Clarification On The Scope Of ‘Intermediary Services' – Are We Clear Yet!!

Since the time the concept of ‘Intermediary' was introduced in the service tax law, the issue as to who is an ‘intermediary' has been discussed extensively by the industry, interpreted and analysed by the experts, tested and explained by the courts and above all clarified, clarified and clarified by the Government. The concept of intermediary typically entails a bridge or communication link between two businesses.

The intermediary is thus a person who facilitates or arranges the business transaction to take place between two willing persons. And the business transaction happens directly between the two persons who are communicating through the intermediary or the middleman.

A variety of activities such as call centres, back-office support services, promotion and marketing agencies, pre or post-sales support services, quality control or supervision activities, payment collection etc. are typically viewed as ‘intermediary' services by the department