Negative list-based service tax: Issues & wish list for Budget
Another critical issue requiring immediate clarity is the interpretation of the word ‘intermediary’. Under the Place of Provision of Service Rules, 2012, the place of provision of services qualifying as “intermediary services” would also be the location of the service provider. “intermediary” has been defined as “….who arranges or facilitates a provision of a service (hereinafter called the ‘main’ service) between two or more persons….”. It is not clear as to whether mere intention to arrange or facilitate a main service by way of introduction of a prospective vendor and customer (irrespective of whether the vendor or customer fructifies or not) is sufficient to qualify as ‘intermediary’ – if yes, then a host of
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