On 5 November, the Authority for Advance Rulings (AAR) dealt with a case regarding the payment of service fees by Intertek Testing Services India (Intertek India) to Intertek Testing Management UK (Intertek UK), under a global management service agreement (GMSA).
Intertek India is a subsidiary of Intertek Holding UK. The Intertek group operates in several countries, with its head office situated in London.
Certain companies in the Intertek group have special knowledge or capabilities in the field of executive, commercial, financial, marketing and administrative management systems and techniques. It was considered advantageous to pool the resources and skills available across the Intertek Group, and therefore a GMSA was entered into by Intertek UK and other group companies.
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The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at nishith@nishithdesai.com. Readers should not act on the basis of this information without seeking professional legal advice.
