Tamil Nadu Authority for Advance Ruling (Tamil Nadu AAR), held that provisions of specified services would qualify as support services hence taxable. The members present were T G Venkatesh, Additional Commissioner and K Lata, Joint Commissioner.
The applicant, Translog Direct Private Limited is involved in providing the ‘support services for water transport’ which includes services facilitating berthing of the vessel, liaising with jurisdictional authorities and attend to the requirement of the vessel when the vessel is in Indian territory and the service jurisdiction of the applicant rests with the applicant until the vessel exits the Indian waters. Thus, the applicant extends vessel related services to their customers when the vessel enters the Indian territory and the service with respect to the said vessel comes to an end when the vessel exits the Indian territory. In short, the proposed services are rendered in respect of the vessels which are physically available in the Indian Territory and therefore, we find that the proposed services are squarely covered under Section 13(3) above. Accordingly, the place of supply of service in the location where the services are actually performed, which is the taxable territory. As a result, the applicant intend to supply ‘support services’ in line with the classification under SAC Code 9985 so that the shipping lines/charterers are not worried about the paperwork or other routine & customary formalities involved for its shipments coming into India for further transport.
Tamil Nadu AAR decided the ‘Place of supply’ as the taxable territory wherein the vessels call in, the condition of the place of supply being outside India is not satisfied in the case at hand. Therefore, the proposed supply is not an ‘Export of Service’. Accordingly, the proposed supply is classifiable under SAC 9967 is taxable to GST at 18%.
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