Home Case Index All Cases Service Tax Service Tax + AAR Service Tax - 2016 (9) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 143 - AAR - Service TaxTaxability – activity of clinical trials of the drugs of the customers situated outside India on volunteers in India – Rule 3 of the Place of Provision of services (POP) Rules, 2012 - Held that: - It is noticed that applicant’s proposed service of Clinical Pharmacology is study carried out for generic drugs. Further, study is proposed to be undertaken using formulations in the form of tablets, capsules, gels sprinkles, syrups, sprays, inhalers etc. provided by applicant’s customers located outside India, on eligible volunteers in India. Therefore, it is clear that the formulations in various forms (goods) shall be provided by applicant’s customers located outside India, who is recipient of service from the applicant - provider of service. The proposed activities of undertaking Clinical Pharmacology by the applicant are taxable under the Act in light of Rule 4 of the Place of Provision of Services (POP) Rules, 2012, as the services are proposed to be provided in respect of goods that are required to be made physically available by the service receiver to the service provider (applicant). Further, Clinical Research service provided in respect of goods that are required to be made physically available by the service receiver to the service provider (applicant) are also taxable under the Act in light of Rule 4 of the Place of Provision of Services (POP) Rules, 2012. However, where service of Clinical Pharmacology is not provided by the applicant and only service of Clinical Research is provided, then such service would not be in relation to formulation provided by the service receiver located outside India, to the applicant. Hence, it would be not taxable under the Act in light of Rule 3 of the Place of Provision of Services (POP) Rules, 2012 as the applicant renders said services to its customers and the place of provision is located outside India.
|