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2019 (10) TMI 670 - AAR - GSTClassification of services - Support Services or not - Intermediary services or not - back-end support services provided by the applicant to the Juniper Inc. under the agreement - whether classified under Tariff Heading 9985? - N/N. 11/2017 - Central Tax (Rate) dated 28.06.2017. HELD THAT:- The works that has been entrusted to the applicant by Juniper shows that the Juniper Inc has outsourced its works to the applicant and the applicant is providing his services either updating in the system and if the system is not able to process the work, then it has to do the -process manually and update the system. There is no interaction of the applicant with the third persons, either directly or indirectly and the applicant is only concerned with the work which has been entrusted to it on the system. The issue is whether the applicant is arranging or facilitating the supply of services between two or more persons. The terms of the agreement are verified and found that the applicant has outsourced a part of the activity of supply of services by Juniper Inc to his clients or recipients of such service, to the applicant and the applicant is providing the service in relation to the service provided by Juniper Inc. The exact meaning of the word “facilitating” has not been defined or explained in the Act or Rules. It is seen that the applicant is engaged in providing the services themselves. In other words there is no third person involved in providing services to Juniper or receiving from juniper where the applicant may have acted as the go in between. The applicant is thus not involved as an intermediary in terms of the contents of the statement of work provided by the applicant. Whether the services provided by the applicant to Juniper Inc would be classifiable as “Support Services” under the Tariff Heading 9985 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017? - HELD THAT:- It is very clear that the activities of the applicant is a support service provided to the recipient of services and are not covered under the Groups from 99851 to 99855. It is also not covered by the Service Code 998591 to 998594 and 998596 to 998598 - The nature of the works done is verified and found that it is not office administration work done for others on contract basis and hence they cannot be covered under Service Code 998594. Whether the services rendered can be covered under the term “document preparation services”? - HELD THAT:- The contract agreement is verified and found that the applicant is not just preparing the document but performs activities on the day to day transactions of Juniper Inc like Screening of restricted parties, screening of orders, screening of shipments, maintenance of shipping documents, doing manual processing of transactions on HOLD, auditing of entries, Record keeping etc. Hence the activities of the applicant cannot be covered under the Service Code 998595 and hence covered under the Service Code 998599.
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