Consultancy Services to a Foreign University/Foreign Group Entity does not fall under “Intermediary Services”: CESTAT

CESTAT (Customs, Excise and Service Tax Appellate Tribunal) held that consultancy services provided to a foreign university, which is a foreign group entity, do not fall under intermediary services. Intermediary services are typically taxable when they facilitate a supply between two other parties. The tribunal's ruling suggests that the direct provision of consultancy to a related foreign entity is considered a principal service rather than an intermediary one, potentially impacting the taxability of such cross-border services.