The government has said services outsourced to India and those provided domestically for foreign entities will not be treated as intermediary services, enabling them not to pay the 18% Goods and Services Tax (GST), said the Economic Times on Tuesday about a policy decision that strengthens the country’s back office industry. The Central Board of Indirect Taxes and Customs (CBIC)’s clarification on the scope of intermediary services will ensure that exports of R&D in software, business process management and IT services are not denied ‘export status’.
Sources:
