Apparel Online India Magazine December 1st Issue 2018 | Page 37

INDUSTRY LIVE
During the discussion, it emerged that many buying agents
don’t have a proper service contract put in place. While
proper service contract is a core document to prove authenticity
for any relationship not only from the perspective of avoiding
GST, but at the same time also ensuring the opportunity for
getting insurance cover. Buying agents can get their service
fee insured.
International Sourcing Expo, Australia
Chain stores and
bulk buyers missing
International Sourcing Expo, Australia 2019, which is Australia’s
premier international sourcing show for apparel, accessories
and textiles, was a routine affair for Indian apparel and home
furnishing exporters. The event, which was organised in
Melbourne from 20-22 November, witnessed more than 90 Indian
apparel and home furnishing exporters participating.
Earlier there used to be about 400 exhibitors, while this edition
had somewhere around 700 exhibitors, including many from
China, India and Pakistan. But the number of buyers did not
increase in similar proportion.
“Though the arrangement by FIEO (The Federation of Indian
Export Organisations) was quite good, the promotion was equally
done in a good way as most of the buyers were supposed to place
the order between 50 and 100 pieces only. The start-up buyers
were in high numbers,” informed Aseem Singla, Director,
Fashion Images Overseas, Jaipur and General Secretary of
Garment Exporters’ Association of Rajasthan (GEAR) and
who is participating in this event incessantly from last 5 years.
He further added that event should have more bulk buyers or
buyers from chain stores. The company displayed the latest
collection of ladies garments.
Rajat Mangla, CA and Partner of Shyam Sunder
Mangla & Co. Ajay Abrol, UA Consultants, Faridabad and Secretary, FBA
there is a need to change some
terminologies at the end of buying
agents to remove ambiguity
from their working. He suggests
that, buying agents should write
themselves as service providers’
rather than using the word
‘commission’ or ‘brokerage’; and
must use the correct terminology as
‘service fee’ which is more suitable
and apt with the kind of work the
buying agent performs.  ‘Supply Chain Management’ actually
describes their services in a much
better manner.
It also makes a lot more sense
in the GST regime as GST is
applicable on commission agents and
not service providers. Similarly,
terms like ‘price negotiation’
and ‘sourcing of products’ need
to be avoided because it also falls in
intermediator definition while the
‘identification of the product’ and
P. Sudhakaran, Managing Partner of Vasulal International,
Azhikode, Kannur who displayed its entire range of home
furnishing, was not too happy with the event. He shared with
Apparel Online, “I don’t know the exact reason, but buyer
footfall was less in the fair. We only interacted with small
retailers and hardly any chain store buyer was seen there.”
Rajat further suggested few
prerequisites in GST avoidance,
like the payment should be in
foreign exchange, and that
service provider and service taker
should not work like a branch or
head office. 
Rohit Guha, Founder,
Access India, Delhi agreed
with Rajat’s suggestion and
added that buying agents help the
exporters and overseas buyers on
various fronts by doing multiple
activities and also work like supply
chain managers. So they should use
terms like ‘service providers’ and
‘service fees’ across the board. 
Aseem Singla, Director, Fashion Images Overseas, Jaipur is seen discussing with a visitor at
International Sourcing Expo
www.apparelresources.com | DECEMBER 1-15, 2018 | Apparel Online India
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