Case Law Details
In Re Shell Technology India Private Limited (AAR)- It cannot be denied that the Applicant receives services in the form of general finance advice, Taxation advice, legal advice, advice on Information Technology, media advice, assistance in contract and procurement and assistance in Marketing. It is trite that these advisory services would be consultancy services if the element of expertise or special knowledge on the part of the consultant is established. In the facts of the case before us, SIPCL, the consultant in the present case, is in the business of providing advice and services to various Shell Operating companies.
In fact, while explaining General BSS the word “advice” is used very often. Under clause 4 (1) of the CCA, the mode of providing General BSS are also “through visits and other interchanges between members of the offices of the relevant staff ; an important ingredient of consultancy services. The special knowledge and use of expertise on the part of SIPCL is clearly evident from the explanation of each service as is provided by the Applicant. In our opinion, the services being rendered are consultancy services.
We may also point out that the Agreement does cover certain other services like management support, development, communication and audit of standards of performance and human resources but it cannot be denied that under the Agreement, all the services come as a bundle and cannot be segregated. In our view, the nature of General BSS, viewed as such, is of Consultancy Services.
AUTHORITY FOR ADVANCE RULINGS (INCOME TAX), NEW DELHI
17th Day of January, 2012
Please become a Premium member. If you are already a Premium member, login here to access the full content.
