Case Law Details
Boks Business Services Pvt Ltd Vs Commissioner of Central Goods And Services Tax Delhi South And Anr (Delhi High Court)
Appellant is not intermediary if is neither facilitating provision of services by a third entity nor acting as a middleman for procuring such services for its affiliate
Introduction: In a pivotal judgment, the Delhi High Court recently delved into the definition of an “intermediary” under the Integrated Goods and Services Tax Act, 2017 (IGST Act). This decision has notable implications for businesses engaged in providing services to foreign affiliates.
Defining the Issue: Boks Business Services Pvt Ltd challenged the denial of their refund claim for unutilized input tax credit concerning zero-rated supplies. The crux of the contention was whether Boks Business acted as an “intermediary” while providing services to its UK affiliate.
Nature of Services Rendered: Boks Business provides bookkeeping, payroll, and accounting services using cloud technology to its affiliated UK entity, TC Outsourcing Limited. For this, they filed for a refund of unutilized input tax credit from April 2018 to December 2019.
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