TaxTMI 
TaxTMI 
2007 (1) TMI 495
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....rvices to FISAF :- Credit processing or underwriting :- M/s. Sundaram Finance Ltd., would carry out the credit approval procedure in accordance with the credit policy laid down by the company in receiving, evaluating and processing applications of the customers. Loan documentation : This service includes obtaining and checking of loan documents from customers and dealers and record keeping of the same. Back office i.e. Portfolio Administration and Revenue Accounting Service :- It covers provision of a computer based portfolio administration systems, transmission of information, creation of contracts and installment schedules, accrual processing of all contract financial elements, maintenance of detailed customer statement of accounts,....
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....of the department. 2. Heard both sides. Ld. SDR referred to the definition of "Management Consultancy" as given under Section 65(21) of the Finance Act, 1994 and submitted that the aforesaid services had been rendered by the respondents, directly or indirectly, in connection with the management of FISAF and hence squarely fell within the ambit of the said definition. She also pointed out that, in answer to a request made by the JV company (FISAF) for advance ruling on the question whether service tax was leviable on the aforesaid services rendered to them by the respondents, the Ministry (DGST) had informed FISAF that the said services would fall within the scope of "Management Consultancy" defined under Section 65(21) ibid. 3. ....
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.... relating to conceptualizing, devising, development, modification, rectification or upgradation of any working system of any organization". We have already enumerated the services rendered by the respondents. None of these has been shown to be a service rendered directly or indirectly in connection with the management of FISAF. Again, none of these services has been shown to involve advice, consultancy, or technical assistance relating to conceptualization, devising, development, modification, rectification or upgradation of any working system of the JV company. There is substance in the submission of ld. consultant that some of the services in question are covered by the definition of "Business Auxiliary Services", which came to be introd....