ITeSおよびバックエンドサポートサービス、仲介者か否か

Supplier of ITesservices will not be covered under the provision of Intermediary and qualityfor export of services however provide of certain backend support services toforeign customer will fall under the definition of intermediary and notqualified for export benefits under GST

The Indian ITeS industry generates significant foreign exchange for India and is one of the emerging hubs of the world.  Nevertheless, the Indian ITeS industry has been facing significant competition from its Asian counterparts like Philippines, Vietnam etc.  In this context, the Government of India has provided various export incentives to make Indian ites backend support service competitive in the global market.

fhowIn this context, Central Board of Indirect Taxes and Customs has received several representations from trade and industry seeking clarifications on the scope of (ites backend support service )Information Technology enabled Services (“ITeS”) (like call center, business process outsourcing (‘BOP’) services, etc. and services by “Intermediaries” under GST law.  There were questions raised whether the same qualify to be “export of services” under GST law.

ites backend support service circular

Vide Circular No. 107/26/2019-GST dated 18 July 2019, the CBIC has provided clarifications on the ites backend support service. In this context, the CBIC has clarified that the ITeS services not provided to own account shall not be considered as “Intermediary services” and shall be considered as ‘export of services’ if other conditions are satisfied.

The summary of the Circular is given below:

1. Definition of Intermediary in GST

As per Section 2(13) of the Integrated Goods and Service Tax Act, 2017 (“IGST Act”), an Intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.

2. Specific exclusion in ites backend support service

The definition of intermediary provides a specific exclusion of a person who supplies such goods or services or both or securities on his own account. Accordingly, the service provider would not be considered as an “Intermediary” if he is involved in the supply of services on his own account, even while acting as an agent/ broker or any other person.

3. Scope of ITeS

ITeS is not defined under the GST law. However, the definition of ITeS can be traced to Rule 10TA(e) of the Income-tax Rules,1962 on the provisions of Safe Harbour Rules for International Transactions.

ITeS means the following business process outsourcing services provided mainlywith the assistance or use of information technology, namely:

• back office operations;
  • call centres or contact centre services;
  • data processing and data mining;
  • insurance claim processing;
  • legal databases;
  • creation and
    maintenance of medical transcription excluding medical advice;
  • translation services;
  • payroll;
  • remote maintenance;
  • revenue accounting;
  • support
    centres;
  • website services;
  • data search integration and analysis;
  • remote
    education excluding education content development; or
  • clinical
    database management services excluding clinical trials,

However, ITeS specifically excludes any research and development services whether or not in the nature of contract research and development services.

4. Scope of Backend support services

Such backend services may include support services, during pre-delivery, delivery and post-delivery of supply (such as order placement and delivery and logistical support, obtaining relevant Government clearances, transportation of goods,post-sales support and other services, etc.).

5. Various examples for classification of ITeS as “Intermediary services”

5.1 ITeS service provider renders back end services

• Services provided on its own account - Service provider would not be considered as an “Intermediary”.
• Services rendered to the customers of his clients on behalf of the client – Service provider would not be considered as an “Intermediary”, if services are provided on its own account

5.1 Backend support service provider facilitates supplies of goods/ services

• バックエンドサポートサービス提供者は、海外に拠点を置くクライアントに代わり、そのクライアントの顧客に対して商品やサービスの提供を調整・促進します。
• バックエンドサービスには、供給の配送前、配送中、配送後のサポートサービス（注文受付、配送・物流サポート、関連する政府の許認可取得、商品の輸送、販売後のサポートなど）が含まれます。
• サービス提供者は、これらのサービスが自身の計算によるものではなく、2者以上の間での商品やサービスの供給を調整・促進するためのものに過ぎないため、「仲介者」とみなされます。

5.3 自社の計算および他者の代理としてITeSサービスおよびバックエンドサポートサービスを提供する供給者

• インドのサービス提供者は、自社の計算でサービスを提供する一方で、様々なサポートサービスの調整・促進も行っています。
• ITeSサービスとバックエンドサポートサービスという2種類のサービスが提供されています。
• サービス提供者が「仲介者」とみなされるかどうかは、個々のケースの事実関係や状況によって異なります。主たる供給と付随的な供給の判断は、事実に基づいた検証が必要です。

6. ITeSサービス提供者に対する輸出優遇措置の適用

IGST法第2条(13)項に基づく「仲介者」に該当しないITeSサービス提供者は、GST法の下で輸出優遇措置を受ける資格があります。IGST法第2条(6)項に基づき、以下のすべての条件を満たす場合、そのサービスは「サービスの輸出」とみなされます。

• サービス提供者が
  インド
  • に所在していること
  • サービスの
    供給地がインド国外であること
  • サービスに対する対価が
    サービス提供者によって交換可能な外国通貨で受領されていること
  • サービス
    提供者とサービス受領者が、IGST法第8条の注釈1に規定される
    同一法人の別拠点に過ぎない関係ではないこと。

7. 結論

CBICによるこれらの明確化は歓迎すべき動きであり、インドのITeS業界にとって朗報となるはずです。本通達を適用し、提供サービスが「仲介サービス」の性質を有さないと判断されることで、他の条件も満たせば、当該サービスは「サービスの輸出」として適格となり、還付の対象となる可能性があります。