TMI BlogClarification on doubts related to supply of Information Technology enabled Services (ITeS services).X X X X Extracts X X X X X X X X Extracts X X X X ..... tor Generals / Director Generals (All) Madam/Sir, Subject: Clarification on doubts related to supply of Information Technology enabled Services (ITeS services) - reg. Various representations have been received seeking clarification on issues related to supply of Information Technology enabled Services (hereinafter referred to as ITeS services ) such as call center, business process outsourcing services, etc. and Intermediaries to overseas entities under GST law and whether they qualify to be export of services or otherwise. 2. The matter has been examined. In view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d services means the following business process outsourcing services provided mainly with the assistance or use of information technology, namely:- (i) back office operations; (ii) call centres or contact centre services; (iii) data processing and data mining; (iv) insurance claim processing; (v) legal databases; (vi) creation and maintenance of medical transcription excluding medical advice; (vii) translation services; (viii) payroll; (ix) remote maintenance; (x) revenue accounting; (xi) support centres; (xii) website services; (xiii) data search integration and analysis; (xiv) remote ed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. Such backend services may include support services, during pre-delivery, delivery and postdelivery of supply (such as order placement and delivery and logistical support, obtaining relevant Government clearances, transportation of goods, post-sales support and other services, etc.). The supplier of such services will fall under the ambit of intermediary under sub-section (13) of section 2 of the IGST Act as these services are merely for arranging or facilitating the supply of goods or services or both between two or more persons. In other words, a supplier A supplying backend services as mentioned in this scenario to the customer C of his client B would be intermediary in terms of sub-section (13) of section 2 of the IGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice when, (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8 . 7. It is requested that suitable trade notices may be issued to publicize the contents of this Circular. 8. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board. Hindi version will f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
