Authority for Advance Ruling — Taxability on Management consultancy Service – The applicant engaged in the supply of services of Management consultancy to clients abroad. The remuneration for providing the management consultancy services paid by the clients as fixed monthly consultancy fees specified in the Consultancy Service Contract. The applicant is rendering the services over telephone and by electronic means like email etc. The applicant sought an advance ruling as to (i) whether the applicant, engaged in providing management consultancy services, is falling within the definition of the term “intermediary” as per Sec.2(13) of the IGST Act, 2017 (ii) whether the management consultancy services provided by the applicant falls within the meaning of ‘Intermediary Services’ as per Sec. 13(8) (b) of the IGST Act, 2017.
Held that:- The Hon’ble Authority for Advance Ruling ruled out that the services provided by the applicant falls under SAC code 998311 “Management Consultancy Services” and the said services does not, in any way, facilitate or arrange the supply of goods or services or both between two or more persons, hence will not fall within the definition of the term “intermediary” as per Section 2(13) of IGST Act, 2017. Further held that second question involves the determination of the “Place of Supply” of the services supplied by the applicant which is beyond the jurisdiction of the Authority.—Thomas Joseph Nellissery, In Re… [2019] 10 TAXLOK.COM 054 (AAR-Kerala)