TaxTMI 
TaxTMI 
2023 (7) TMI 1587
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....orks India Pvt. Ltd. is engaged in providing IT-enabled services to the clients of its AE in the form of providing certain post sales customer care services like technical support, information queries, issues with new products, trouble-shooting through email and voice platforms, etc.). In the TP study report the assessee has given detailed analysis of functions, assets and risks wherein it has been stated that it provides IT enabled services to the client of its AEs for which it is remunerated by AEs. It is the AE which is responsible for developing the business and developing systems and methods, doing software research and development, carrying out further improvement in the software design and software capabilities, apart from coordinating with the various Customer Interaction Centers, for rendering the IT enabled services. The detailed functions performed by AE and E-Clinical Works India Pvt. Ltd in the TP study report has been highlighted in the following manner :- a) Development of Services 4.8.2 Initially the integrated EMR/ PM solutions of e-Clinical Works are offered by providing the software solutions using the Software as a Service (SaaS) Model. The ori....
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....ation from the legacy system, preparing the client's site ready for the installation services etc. 4.8.8 AEs staff is responsible for the implementation and set-up of the telecommunications and Information technology platform. This function involves selection of the location and capital investment. 4.8.9. Each site uses a standard operating environment developed by the AES. This includes the telephone communications systems, desktops and software. 4.8.10 All assets situated in India are purchased and owned by eClinicalWorks. 4.8.11 eClinicalWorks works in co-ordination with its AEs to resolve any client connectivity issues at eClinicalWorks site and customization of any software, if required. e) Training Customer Interaction agents 4.8.12 A critical success factor for eClinicalWorks is its service by well-trained Service Support Representatives (SSRS). eClinicalWorks has a training department which provides two to three weeks of basic training to all newly hired SSRS. SSRS's are trained in three areas: ● Customer Services ("Soft Skills"), which involves applying the ECW's customer delivery pro....
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....rence calls with the AES business manager and the client. 4.8.19 eClinicalWorks's SSRS provide services directly to customers of its AEs. As per the agreed installation schedule, the SSR log's into the client servers performs the installation tasks. For voice support, the automated call distribution system (switches) automatically routes customer calls to an appropriate SSR. Customized software enables Identification of case history and case ownership. 4.8.20 eClinicalWorks is responsible for the maintenance of the system supporting its operations, eClinicalWorks LLC determines and provides any software upgrades to the system. 4.8.21 Each client contract has a metrics of quality levels that are based on customer service levels, customer wait time, management of call volumes and expected volumes The majority of contracts set out specific quality control measures that must be met by the site. eClinicalWorks is a strong proponent of continuous quality improvement The quality leads monitor the SSRs customer interactions and assess those interactions using a structured measurement process. eClinicalWorks performs quality assurance to ensure th....
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.... this section is to provide information on the economic characterization of eClinicalWorks India and eClincial Works LLC, based on the functional analysis of the Inter- company transactions of ECW India. This is an important step to enable execution of the benchmarking analysis. 4.10.2. eClinicalWorks LLC can be characterized as the entrepreneur because of its ultimate responsibility for marketing, contractual risks and client ownership. 4.10.3 eClinicalWorks India can be characterized as a limited-risk back office service provider, rendering software support, call center and IT/ MIS and ITES to its associated enterprise. 4. Thus, the major functions are being carried out by AE, whereas E-Clinical Works India Pvt. Ltd. mostly carries out service by well trained service support representatives and training of the staff. The assets are mostly required infrastructure including its premises at both locations, computers and networks equipment etc. and does not have any significant tangible assets and even the intangible assets are owned by AE. The assessee in so far as risk is concerned is a very limited risk back office service provider rendering software support, ....
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....owever, the ld. TPO rejected the contention of the assessee and held that since it is in the business of outsourcing which is same as ITES segment, hence, same should be included in final list of comparables. 8. The ld. CIT (A) has directed to exclude the said comparable after observing as under :- 11. Perusal of annual report reveal that the company is not a comparable as they operates in a different profile. As per annual report the company is "engaged in the business of providing publishing solutions viz, type setting and data digitization services for overseas publishers and supports international publishers through every stage of the author-to-render publishing process and provides a digital-first strategy for publishers across content production, enhancement and transformation, delivery and customer support This digital focus spans across STM/ academic, Ingher education, trade and directory markets". Annual report (page 30) also reflects that activity is more than real BPO/IT enables services, more into publishing services. Hence Transfer Pricing Officer/ Assessing Officer is directed to eliminate the case as a comparable. 9. After hearing both the parties and ....