An advertising agency provides services of hoarding (add boards) in India and the service receiver is a foreign company having no place of business in India Let me know how the tax invoice will be prepared (0% or 18%)

Reply—As per section 2(13) of IGST Act, “Intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.

As the advertising agency is providing services directly to foreign client, it would not fall under category of intermediary. 

As per section 2(6) of IGST Act, “export of services” means the supply of any service when,––

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange 1[or in Indian rupees wherever permitted by the Reserve Bank of India]; and

(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;

If all the above conditions are fulfilled, it can be considered as 'Export of service' and supply of service can be done with LUT without payment of tax or with payment of IGST as the case may be. 

As per section 13(2) of IGST Act, place of supply of services where the location of the supplier of services or the location of the recipient of services is outside India, the place of supply of services except the services specified in sub-sections (3) to (13) shall be the location of the recipient of services.

Hence, IGST will be applicable on above transaction.