Distributorship of goods cannot be regarded as service – AAR

CA Urvashi Porwal The applicant herein has entered into a Memorandum of Understanding (MoU for short) with one foreign firm IDEAS (i.e. IDEAS Management Consultants, Oman). Under that Memorandum of Understanding (MoU for short), the applicant has agreed to become a Distributor of the books of various nature which will be supplied by IDEAS (i.e. IDEAS Management Consultants, Oman) and those books will be sold to the various purchasers in India. The question which has been posed in the application is as to whether the service tax liability will be for an activity described as under:- “proposed...