Exporters having tripartite agreements with multinationals under GST scanner
New Delhi: The tax department has held back the export benefits of many companies that have three-way contracts, or tripartite agreements, with multinationals, the Economic Times mentioned in a report citing people dealing with such cases.
The indirect-tax department is of the view that many fintech companies, captive units of multinational banks and several other entities providing IT and IT-enabled services that have such agreements don’t really export services but are merely intermediaries or agents.
As per current regulations, exports do not attract GST but exporters can claim refunds of the tax paid on inputs from the revenue department. This policy is aimed at making Indian goods and services more competitive in the international markets.
“All tripartite agreements may not fall within the purview of intermediary…