9911796707
TMI Blog2018 (7) TMI 1495X X X X Extracts X X X X X X X X Extracts X X X X ..... t is specified that the Applicant will also provide student facilitation services. Since the above services are for conducting the IELTS exams and are so bundled with each other that these can not have an independent existence and therefore these are composite supply of services. Since the principle supply is of the service of conducting exams it is rightly classifiable under service code 999299 group 99929 and heading 9992 as education support service and therefore taxable @ of 18% (9% CGST and 9% HGST) vide sr. 30 of N/N. 11/2017 Central Tax (Rate) dated 28.06.2017 and corresponding State N/N. 46/ST-2 Dt. 30.06.2017. Ruling:- The activity involved in the exam support service as proposed at schedule-I part-A and B of the proposed agreement constitute a composite supply. Since the principle supply is conducting of IELTS exam it is covered under Service Code 999299 Group 99929 and Heading 9992 as education support service and therefore taxable @ of 18% (9% CGST and 9% HGST) vide sr. no. 30 of notification no. 11/2017-Central Tax (Rate) dated 28.06.2017 and corresponding State notification no. 46/ST-2 Dt. 30.06.2017. - AAR No. HAR/HAAR/R/2017-18/11 - - - Dated:- 1-6-2018 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d liaison with the test centres; (v) To provide back office support in relation to financial controls and accounting processes in respect of examinations held at test centres managed by the Applicant; (vi) To print IELTS result in paper form from BCUK's global system and distribute certificates on BCUK's behalf to successful candidates in India: (vii) To recruit, train and monitor invigilators, examiners and test paper markers for the IELTS tests, in accordance with the standards set by BCUK and their own administrative and management staff; (viii) To periodically inspect the quality of test centres and provide documented evidence on their performance. 7. Under the agreement it is specified that the Applicant will provide Exam Support Services to BCUK for which BCUK will pay the charge to the Applicant as follows: (a) Exam Support Services provided by the Applicant will be billed to BCUK calculated at cost plus mark up determined in accordance with relevant transfer pricing regulations, (b) The cost will include costs of test centres and dedicated staff, directly recruited by the Applicant and an apportionment of indirect costs incurred whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pport services and pan-C specifies to services pertaining to student facilitation services. The Ld. Counsel for the applicant had argued that the proposed services as per part-B in schedule -I appended to the copy of agreement are exam support services and constitute a composite supply of conduction of examination and the services mentioned in part-C of said agreement are other back end support services which are so bundled together that such back end support services cannot be said to have an independent existence. These are only ancillary to conduction of examination. The bundle of these services is classifiable as other educational support services under service code 999299 group code 99929 and beading 9992 as per scheme of classification of services appended to notification no. 11/2017 Central Tax (Rate) dated 28.06.2017 and corresponding State notification 46/ST-2 Dt. 30.06.2017. The principal supply is of the service of conducting of exam which is taxable @ 18%. They had also argued the above issue in the light of several decisions of the court and especially have referred to the scheme of United Nation Central Product Classification (UNCPC). They have drawn our attent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Services cover the following: (i) To source and manage the running of suitable test centre venues in India for the examination; (ii) To receive registration information from BCUK and its registration agents for IELTS; (iii) To maintain supplies of Test Materials for administration and comply with security requirement set by BCUK and relevant external exam boards in relation to logging in and out. To distribute test materials to candidates on the test day and collect them after test administration for processing; (iv) To manage test administration and logistics for test days, including scheduling of the Applicant's staff and liaison with the test centres; (v) To provide back office support in relation to financial controls and accounting processes in respect of examinations held at test centre; managed by the Applicant; (vi) To print IELTS result in paper from from the BCUK's global system and distribute certificates on BCUK' s behalf to successful candidates in India; (vii) To recruit, train and monitor invigilators, examiners and test paper markers for the IELTS tests, in accordance with the standards set by BCUK and their own adminis ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
