The way BPOs and KPOs are conceptualised, they may not be treated as intermediary – Shri Vivek Johri – CBIC Chairman

In an interview to Business Line, on being asked “The CBIC came out with a circular on defining intermediary last September, still there are questions whether BPO and KPO should be called intermediary or not. What do you have to say?” CBIC Chairman Vivek Johri said that our circular was quite detailed on intermediary. We have deliberately mentioned that, eventually, each case will have to be determined on the basis of facts. 

He further told that If he was to generalise the way BPOs and KPOs are conceptualised, in his view, they may not be treated as intermediary. There are some illustrations also to that effect in the circular, but it is not possible to straight-jacketed and say that no situation under which an entity providing services be treated as intermediary. We will have to examine each case.

He said that the feedback we have got from the industry is that they are generally alluded to problems they are facing at one or two locations, but they were not specific about how that circular has not been interpreted correctly by the field formation. We are waiting for them to share those details and then we can examine.

Earlier, CBIC had issued a Circular No. 159/15/2021-GST dated 20th September, 2021 to clarify the issues of intermediary services.

Source : Business Line