Taxability of Intermediaries – Part – 2: Tests for Identification
NITYA Tax Associates is pleased to present their recent write-up in the ‘Article’ series on trending indirect tax issues. A gist of the next article is as under:
Article 78 – “Taxability of Intermediaries – Part – 2: Tests for Identification”
Taxability of intermediaries has been a controversial topic in GST regime. The tax authorities across the country have not been consistent in determining the nature of services to be considered as intermediary services. With the issuance of Circular No. 159/15/2021 – GST dated September 20, 2021, one may wonder if the issue has settled down, or will the conundrum continue?
In Part-1, we discussed the constitutional aspects involved in taxability of intermediary and the impact of an unfavourable judgment of Gujarat High Court in the case of Metal Recycling Association of India v. UOI, 2020-VIL-341-GUJ and then a dissenting opinion of the Division Bench in the Bombay High Court in case of Dharmendra M. Jani v. UOI, 2020-VIL-470, 472-BOM.
In this Part, Partner, Mr. Deepak Suneja, Senior Associate, Mr. Rohit Kumar and Executive, Ms. Tanya Rani have examined relevant tests for determining when a service qualifies as an intermediary service and whether the recent Circular bring much required relief to the corporates and intermediaries.
Please click on the below link to read our latest article titled “Taxability of Intermediaries – Part – 2: Tests for Identification”.