Indenting agents of foreign companies may get partial relief on integrated goods and services tax (IGST).
Sources said that the finance ministry officials have assured the indenting agents — agents of foreign companies, who sell their products in India and overseas by charging a commission — that it will consider their demand for exempting them from IGST but only partly. IGST may not be levied on transactions, which are sold overseas.
Indenting agents in the metal industry have already approached Gujarat High Court against the IGST.
Now, those in textiles, handicrafts and home furnishing industry are planning to approach Chan¬digarh and Delhi high courts. IGST is levied on these agents under Section 13(8)(b) of the IGST Act, which deems the place of supply for intermediary services in India.
Abhishek Rastogi, counsel of petitioners in the Gujarat high court and partner at Khaitan & Co.Ltd, said it is hoped that the benefit comes immediately at least with respect to service when the imported goods are going from outside of India to another overseas destination.