9911796707
TMI Blog2023 (9) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... , in fact, contracted to provide the services, and is the principal service provider in the context of the services provided by it book keeping, payrolls, and accounts through the use of cloud technology. In case of intermediary services, there are three entities one providing the principal service, one receiving the principal service, and an intermediary who acts as an agent or a broker for facilitating or arranging such services for the service recipient. In the present case, although the agreement does use the word agent but is clear that the petitioner is not acting as an agent for procurement of services for the service recipient. It is, in fact, providing the principal service of Bookkeeping, Payroll, and accounts, through the use of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Services Tax Act, 2017 (hereafter the IGST Act ). 2. The petitioner is engaged in the business of providing book keeping, payroll, and accounting services through the use of cloud technology to its affiliated entity (TC Outsourcing Limited, previously known as Boks Business Services Limited) incorporated in the United Kingdom. 3. The petitioner made an application for refund of unutilized input tax credit in respect of the export of services for the tax periods, April 2018 to March 2019 and April 2019 to December 2019, in the requisite form (Form RFD 01). 4. The petitioner received a show cause notice dated 24.06.2020 proposing to reject the petitioner s claim for the refund on the ground that the services rendered by the petitioner to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Authority concluded that the petitioner was not a principal service provider to the foreign clients. 8. The principal question to be considered is whether the petitioner can be considered as an intermediary within the meaning of Section 2(13) of the IGST Act in the context of the services rendered by it. 9. Undisputedly, the petitioner has rendered services to its foreign affiliate, Boks Business Services Limited, in terms of the agreement dated 12.05.2017. The recitals and clauses 1, 2 and 5 are relevant. The same are set out below: This Agreement is made on this 12 day of May, 2017 between. M/s. BOKS BUSINESS SERVICES LIMITED incorporated in England and Wales with company identification number 10551877 under the Laws of the United ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion the work assigned. c. The above fees is subject to review and change with mutual consent from time to time. 10. It is clear from the aforesaid terms, that the petitioner is not an intermediary, inasmuch, as the petitioner is neither facilitating the provision of services by a third entity nor acting as a middleman for procuring such services for its affiliate. The petitioner is, in fact, contracted to provide the services, and is the principal service provider in the context of the services provided by it book keeping, payrolls, and accounts through the use of cloud technology. 11. In case of intermediary services, there are three entities one providing the principal service, one receiving the principal service, and an intermediary who ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
