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2018 (7) TMI 1491 - AAR - GSTLevy of GST - Collecting agent for insurance companies - Whether collections made by the applicant under Manipal Arogya Suraksha Scheme from public on behalf of the insurance companies are liable to levy of tax considering the fact that the same are made merely as a collecting agent and the applicant is not engaged in provision of services? Held that - The Applicant requested to permit them to withdraw the application filed for advance ruling vide their letter dated 19.02.2018 - The application filed by the Applicant for advance ruling is dismissed as withdrawn.
Issues:
1. Whether collections made under a healthcare scheme are liable for tax when collected on behalf of insurance companies by an educational institution not engaged in service provision. Analysis: The case involved an educational institution, referred to as MAHE, seeking an advance ruling on the tax liability of collections made under the Manipal Arogya Suraksha Scheme. MAHE, engaged in providing educational and healthcare services, collaborated with trusts and NGOs to introduce healthcare programs for the public. The scheme involved collecting premiums from beneficiaries to pass on to insurance companies for providing insurance services at concessional rates. The key question was whether these collections, made by MAHE as a collecting agent, were subject to tax even though MAHE was not directly providing services. During the proceedings, MAHE submitted a specific authorization for their representatives, Chartered Accountants, to appear before the authorities. The authorized representatives attended the personal hearing and presented submissions. However, MAHE later expressed their intention to withdraw the advance ruling application through a formal letter. In their findings and discussion, the Authority considered the submissions from MAHE and their representatives, along with the transaction details and the applicant's understanding of the tax implications. Ultimately, the Authority ruled to dismiss the application as withdrawn following MAHE's request to withdraw it.
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