2013 (12) TMI 1613

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....e bought the equipments from their holding company. For this purpose, they maintain a call centre which is contacted by the customers who have purchased the equipment when they have a problem. Effort is made to sort out the problem by giving guidance on line and over telephone and when that fails, engineers are deputed to the site and when that also fails, the matter is referred to the principal company for further appropriate action. Taking a view that the work undertaken by the appellant amounts to management, maintenance and repair of the software supplied with equipment and the whole activity is performed in India for Indian customers who have received the equipment and the software from Verint, proceedings were initiated. As a result o....

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....side India nor used outside. However, when we look at the definition of the "input service", it is a service provided by a person to another person. In this case as per the records, the service is provided by the appellant to their holding company in US. The invoice for the service rendered is raised on their principal. The payment for the service rendered is made by the principal company in US. Moreover when problem cannot be solved by the assessee, principal steps in, which shows that ultimate/basic responsibility of provision of service is of Verint. There is absolutely no nexus between the Indian customers and the appellants. As far as the customer in India is concerned, the responsibility for maintenance rests with the foreign company ....