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2. CIOP is a wholly owned subsidiary of Centrica Plc., a company incorporated in the United Kingdom ("UK"). CIOP is incorporated in India. British Gas Trading Ltd. ("BSTL") and Director Energy Marketing Limited, Canada ("DEML") are also subsidiaries of Centrica Plc. These overseas concerns are collectively referred to hereafter as "overseas entities". They are in the business of supplying gas and electricity to consumers across the U.K and Canada. The overseas entities outsource their back office support functions - for instance, debt collections/consumers‟ billings/monthly jobs to third party vendors in India etc. To ensure that the Indian vendors comply with quality guidelines, CIOP was established in India on 11.3.2008. It was to act as service provider to these overseas entities.
3. CIOP entered into service agreement with overseas entities to provide locally based interface between those overseas entities and Indian vendors. The scope and range of services so provided in terms of those agreements/understanding are: (i) management assistance for outsourced supplies in India and facilitating efficient interface back to U.S. business of Centrica Plc; (b) ensure that outsourced suppliers adhered to best practices and share them on e-2-e on optimal basis;

(c) expert advice on widening scope of potential services in India to target work force through greater control and such other services as may be requested by Centrica Plc from time to time. It is stated that WP(C) No.6807/2012 Page 2 in terms of the agreement, the petitioner is compensated on full costs, i.e. expenses adopted by it in the Profit and Loss Account plus a mark-up of 15%. The petitioner is an income tax assessee and has been filing returns and paying income tax on the income earned out of the service agreement. To seek support during initial year of its operation, CIOP sought some employees on „secondment‟ from the overseas entities. For this purpose, it entered into an agreement with the overseas entities in which the latter seconded some employees for fixed tenure. It is stated that in terms of the secondment agreement - copy of which has been placed on the record, the employees so seconded work under CIOP‟s direct control and supervision. Conversely, the overseas entities are not responsible for any error or omission of the work of such employees. CIOP bears all risks and rewards associated with the work performed by such employees. To drive home this point, CIOP relies upon certain conditions in the secondment agreement, notably Sections 2.1(C), 2.2(A), 2.3(A) and 2.3(B). It is stated that the agreements fully require the petitioner to enter into a further individual agreement with each such employee (secondee) in terms of a pre-determined format.

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26. In the case on hand, as can be seen, the secondee employees are all rendering managerial services. They are General Manager, Operations Manager, Delivery Manager and Relationship Manager respectively. It is true, as pointed out by the Revenue, that even the separate agreements do not specify the nature of the services required to be provided by the employees. There is no material as of now to indicate that they are performing any technical functions or consultancy functions. They can be said to be managing the business of the subsidiary as requested by Centrica Plc., consistent with its aims. There is no acceptable argument except reliance upon a ruling by this Authority in Version Data Services India Private Limited (AAR No.865 of 2010). We may notice that the High Court of Madras has in a Judgment in Writ Petition No. 14921 of 2011, set aside the finding of this Authority on that question and has remanded the relevant question for a re-consideration. To that extent, the finality of the Version Ruling has now gone. So, the reliance placed on that Ruling by the Revenue is of no avail.