TaxTMI 
TaxTMI 
TaxTMI 
2023 (7) TMI 1587
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....T-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 original concept of outsourcing post-sales services and more sp....
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....sible 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 procedures and standards. ● General Technology, which involves training on eClinicalWorks Group technology platforms; and ● Client servicing Technology, which involves train....
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....ion 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 that its services meet the specified quality standards. The quality and performance are also monitored by eClinicalWorks LLC. 4.8.22. The training & quality department is also responsible for addressing quality control issues g) Client Relationship 4.8.23. AES are responsi....
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....esponsibility 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, call centre and ITES to its AEs. The international transaction entered with its AE was purely in respect of provision of IT enabled services of Rs.120,42,18,944/ -. The assessee company had applied TNMM as the Most Appropriate Method and submitted its margin on that profit before interest, depreciation and tax upon operating cost at 21.05% and reported that the comparables which assessee ....
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....zation 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 on perusal of the relevant material referred to before us at the time of hearing and orders of the authorities below on the issue of inclusion of one comparable M/s. MPS Limited, we find that in so far as FAR of the assessee is concerned, we have already incorporated in detail and it can be seen that assessee is just providing well trained service support representatives and train them for providing services to particular clients of the AE and does not carry out any other functions or assume any kind of risk or have any significant assets deployed. N....