Intermediary services test failed where overseas student counselling was performed on own account and treated as export of services.

Services of identifying and counselling students for admission in foreign educational institutions were treated as substantive services rendered to overseas universities and colleges, not as facilitation of another person's supply. Because the activity was performed for foreign recipients, consideration was received in convertible foreign exchange, and no three-party brokerage or facilitation structure was shown, the arrangement did not satisfy the test for intermediary services. The service provider acted on its own account for the overseas recipients rather than as a conduit between two other parties. The services were therefore export of services and service tax was not leviable.

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Issues: Whether the services of identifying and counselling students for admission in foreign educational institutions, rendered against commission from overseas universities or colleges, constituted "intermediary services" or amounted to export of services.

Analysis: The disputed activity was found to be rendering services to foreign universities and colleges located outside India, with consideration received in convertible foreign exchange. The arrangement did not show any tripartite structure involving the respondent as a broker or facilitator between two other parties, nor any direct charge to students in India. The nature of the service was held to be the substantive service contracted by the foreign recipients, and not facilitation of another person's service on behalf of a principal. The reasoning adopted the principle that intermediary status requires a minimum of three parties, facilitation of a main supply between them, and a relationship distinct from provision of the main service on one's own account.

Conclusion: The services did not fall within the category of intermediary services and were export of services; service tax was not leviable.

Ratio Decidendi: A person is not an intermediary unless there is a three-party arrangement with facilitation of another person's main service, and the service is not performed on the provider's own account for the overseas recipient.

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