Marine Consultancy Services will be treated as intermediary service : AAAR

Marine Consultancy Services will be treated as intermediary service : AAAR :Appellate Authority for Advance Ruling in matter ofFive Star Shipping held that where appellant has entered into consultancy agreement with foreignshipowner for supply of Marine Consultancy Services which consists of consultancy service and support service, entire gamut of services given by applicant will be treated as composite supply of intermediary services and accounting services where intermediary service is principal supply. The Extract of ruling is given below :

Order

In view of the above discussion, we hold that the entire gamut of services performed by the Appellant are in fact of the composite supply of the intermediary services, classified under the Service Accounting Code 999799, which is other miscellaneous services, and the accounting services under the SAC 998222, of which the intermediary service is the principal supply. Therefore, the issues raised by the Appellant with regard to their activities in this appeal stands disposed in terms of the above discussion and findings. The individual questions, asked by the Appellant vide their application filed before the Authority for the Advance Ruling as well as vide their appeal filed before us have lost the context as well as relevance in light of all the above discussion and findings, as we do not look the activities of the Appellant, specified in the Annexure to the Agreement in question, as grouping of consultancy service and support service, rather we treat the entire gamut of services as a composite supply of intermediary services and Accounting services of which the intermediary services is the principal supply.

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