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Key Takeaways: Webinar on implications of circulars on "intermediary services" and services provided by subsidiaries to overseas affiliates
Key Takeaways: Webinar on implications of circulars on "intermediary services" and services provided by subsidiaries to overseas affiliates

September 22, 2021

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On September 22, 2021, NASSCOM, in association with Deloitte India as knowledge partners, organised an interactive session with the Industry to discuss implications of GST circulars released by the Central Board of Indirect Taxes and Customs (CBIC) on "intermediary services" and services provided by subsidiaries to overseas affiliates

The session was moderated by Ashish Aggarwal, Vice President and Head – Public Policy, NASSCOM and Mahesh  Jaising (Partner & National Indirect Tax Leader, Deloitte India) and Y Parande (Senior Advisor, Deloitte India and Former Member, CBEC) were the guest speakers.

The session witnessed participation from more than 170 participants and was engaging and insightful.

The Circulars were issued amidst anxious anticipation in the Industry on the lack of clarity on these issues that had led to widespread litigation, including crores of refunds being stuck on a host of services including back office operations, call centre operations and more recent ones on contract Research& Development (R&D) and pure Information Technology (IT) services.

The key principles/ pre-requisites elucidated in the Intermediary circular including the importance of each one of them were discussed. Thereafter, we also covered the illustrations in detail and answered queries received from members on various business fact patterns and the impact of the Circular on them vis-à-vis the illustrations.

Members were also apprised of the binding nature of the Circular and the impact that it would have on ongoing disputes and litigation.

The clarification on export position on services provided by subsidiaries to overseas affiliates will also ensure availability of export status to services provided by Indian IT companies to foreign group entities.

We hope that the Circulars are followed in spirit at the ground level and that many of the long pending issues are resolved paving the way for a more taxpayer friendly environment.

Attached is the slide deck that was presented during the session. The webinar recording is available here.

We trust you will find the update useful.


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