Back office firms move Gujarat High Court on 'intermediary' ruling

The firms have pleaded the definition of 'intermediary' is already established under the previous service tax regime, and alteration will increase the tax burden of the outsourcing industry

Some of the back office service providers in the business process outsourcing (BPO) sector have moved the Gujarat High Court challenging a recent tax department ruling that classified them as intermediaries, making them liable for an 18 per cent goods and services tax (GST) imposition on their services. 
 
In their appeal, these companies have pleaded that the definition of 'intermediary' is already established under the previous service tax regime, and any alteration will not only increase the tax burden on the outsourcing industry, but also open the 'pandora's box' in terms of retrospective taxation.
 
"We have filed a