AAR interpretation of ‘intermediary’

AAR in a recent ruling has interpreted the term ‘such’ in the definition of intermediary under section 2(13) to mean such goods and services or both or securities which are alleged to have been facilitated by the applicant as an intermediary and not the commission services or any other services provided by the intermediary.

The ruling also found that the payment made to an intermediary need not always be a commission payment and can also be in the form of cost plus mark-up. Nature of payment is not part of definition of intermediary.

AIRBUS GROUP INDIA PRIVATE LIMITED- AAR Kar


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