Reimbursed Expenses to Foreign Distributors Taxable as Business Auxiliary Services, Tribunal Rules.

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....Taxability of expenses reimbursed to the foreign distributors under reverse charge mechanism (RCM) - Business Auxiliary Services (BAS) - The Tribunal concluded that the services provided by the overseas distributors fell under BAS. It held that even though the relationship was structured as principal to principal, the services relating to warranty claims and network management performed by the distributors qualified as BAS due to their nature of marketing and promoting the appellant’s products.....