TaxTMI 
TaxTMI 
2023 (11) TMI 1415
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....s of the Global Indian International School ('GIIS') group, which consists of about 21 schools spanning across 7 countries viz. Singapore, Malaysia, Japan, Thailand, UAE, Vietnam and India. The assessee has two Associated Enterprises (AEs) in India, one is Global India School Education Services Ltd. ('GISES') and other is GIIS K 12 Education Pvt. Ltd. Both these AEs have created an individual trust, which runs the respective schools at various locations in India. The assessee has entered into two separate Licensing Intellectual Property (IP) agreements with the Indian AEs, which comprises of licensing of GIIS brand name, proprietary IT system etc. Additionally, the assessee has entered into one more agreement with GISES only for providing intra group services, such as, legal, finance, accounting etc. to streamline business processes, ensure compliance and promote cost-efficiencies etc. Under the Licensing IP Agreement, the assessee has granted licence for access to trade names and "My GIIS" portal to the Indian AEs. Under the said agreement, the assessee also provided intellectual property rights and proprietary specialized software. In terms with Licensing IP Agreement, the assess....
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....ved would also qualify as FTS under Article 12(4)(b) of the treaty. In the above lines, the Assessing Officer framed the draft assessment order. Though, the assessee raised objections before learned DRP against the draft assessment order, however, the draft assessment order was affirmed. In terms of the above, the final assessment order was passed bringing to tax the receipts from intra group services. 6. Before us, Sh. Kanchan Kaushal, learned counsel appearing for the assessee and Sh. Vizay B. Vasanta, learned CIT(DR) appearing for the Revenue have made elaborate submissions supporting their respective stand. Learned counsel for the assessee has also relied upon various judicial precedents. 7. We have given a thoughtful consideration to the rival submissions and perused the materials on record. We have also applied our mind to the decisions relied upon. As discussed earlier, the assessee has entered into separate sub-licensing and training agreements with the two Indian AEs. Whereas, the assessee has entered into a separate service agreement with GISES, one of the Indian AEs. On going through the Sub-Licensing and Training Agreement with GISES, it is observed that under the....
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....E/Registrar of Societies under respective Societies Act, preparation of income-tax return preparation etc. for the Trusts/Schools. Human Resource Assist in recruitment of teachers with appropriate experience needed for a specialist curriculum. The HR personnel of GSH also provides inputs on selection of teachers and school Principals. GISES assists in providing recruitment services (like hiring of teachers, principals, school administrative staff), co-ordinate and manage exit formalities, counselling and retention, settlement, conducting exit interviews and analysis, implement disciplinary norms & standards, reward & recognition schemes, HR policies, payroll processing, PF, ESI compliances, for the Trusts/Schools. " Marketing Providing assistance in marketing and communications. This involves digital marketing campaigns, social media marketing, affiliate marketing, internal communications, out of home promotions, below the line promotions, online reputation management and content marketing campaigns, besides corporate communications, press announcements, new campus launches etc. 9. On a comparative analysis of Licence Agreement and Service Agreement, it is observe....
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....ch ● Timetable of the week and the classes that the teacher has to take ● Communication from the principal and the school board ● Meeting schedules with other teachers and principal ● Deadlines for preparation of assignments/question papers ● Details of exam schedules for different classes 11. Whereas, the nature of services provided under the service agreement, as tabulated elsewhere in the order, would go to show that the services rendered are not in relation to the activities undertaken under the licence agreement. The administrative functions under the service agreement relates to providing assistance to management of trusts/schools to get affiliations from various boards for providing assistance to the management in respect of admission of students and counseling process, assistance in running students' scholarship drive. Other services are in relation to overall operations of schools providing academic advisory for excellence in education and overall improvement of school, providing guidance on teaching methodologies, developing knowledge, module curriculum, providing assistance in accounting, prepa....