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TMI Blog2018 (8) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... and Management Consultant ('PDMC') to provide necessary services to the State/ULBs to ensure implementation of the AMRUT Scheme. The scope of work in respect of the AMRUT is as follows: i. Project management ii. Project planning iii. Survey, studies and investigations iv. Feasibility study v. Detailed design vi. Bidding process and contract award vii. Construction supervision and contract management 1.4 Further, the Ministry of Housing and Urban Poverty Alleviation, Government of India has launched the Pradhan Mantri Awas Yojana -Housing for All (Urban) ('PMAY') to improve civic infrastructure and increase the supply of affordable housing to target segments. The Applicant has been appointed as Project Management Consultant ('PMC)for the PMAY Scheme. The scope of work for PMAY is as under: - Review of HFPoA and Details Project Report - Bid Process Management - Project and Contract Management - Supervision and Quality Control 1.5 On perusal of the aforesaid terms of the both the contracts of AMRUT as well as PMAY, the following understanding appears, as contended by the applicants: (i) For the purpose of executing the Contracts, the Applicant would provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firmative, would such services provided by the Applicant qualify as "Pure services (excluding works contract service or other composite supplies involving supply of any goods)" as provided in serial number 3of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017[Notification No. FA -3-42/201711/v (53) dated 30 June 2017, as amended by Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under Central Goods and Services Tax Act, 2017 ('CGST') and corresponding notifications issued under Madhya Pradesh Goods and Services Tax Act, 2017 ('MPGST Act'), where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and MPGST, respectively. 3. DEAPRTMENT'S VIEW POINT: 4. RECORD OF PERSONAL HEARING: Shri Ravindra Singh Jadon, Project Manager appeared on behalf of the applicants for personal hearing on 11.06.2018 and he reiterated the submissions already made in the application and Annexures with the application. He also sought to submit copies of certain documents and requested that the same may be taken on record. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jana-Housing for All (Urban), Ministry of Housing and Urban Affairs, the PMAY is a Scheme to provide central assistance to Urban Local Bodies (ULBs) and other implementing agencies through States/UTs for Rehabilitation of existing slum dwellers using their land as a resource through private participation, and Affordable Housing in Partnership. 5.5 Thus, the various objectives of both the above Schemes are covered in more than one clauses of the Eleventh and Twelfth Schedule referred in Article 243G and 243W of the Constitution, including Housing, drinking water, sanitation, Park, etc. 5.6 Accordingly, we hold that the Consultancy services rendered by the applicant under the Agreement with Urban Administration & Development, Government of Madhya Pradesh, Bhopal for implementation of AMRUT and PMAY are in relation to functions entrusted to Municipalities under Article 243-W and to Panchayats under Article 243-G of the Constitution of India. 5.7 Now coming to second question for consideration before us is a corollary to the first question, in case the answer to first question is in affirmative. Since we have already made our findings in affirmative as far as first question, we now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipment, etc. from the employer, these Equipments, Furnitures, etc. shall be property of the Employer, and shall be disposed of by the applicant as per instruction of the Employer after their use for the contract'. 5.10 Having carefully considered the nature of equipments, furnitures etc., which the applicant is required to purchase, of the like of Lap-tops, computers, refrigerators, furnitures etc., we find that these items are not naturally bundled into the service being provided by the applicant Further, we also find that as per the contracts, such items have to be disposed off by the applicant after completion of contract as directed by the principal, and the cost of such items would be over and above the contract price. Therefore, we hold that such purchases of equipments, furnitures, etc. would neither make the said contract of consultancy as a works contract, nor a composite contract, and therefore, due to purchase of Equipments, Furnitures, etc. by the applicant, and getting reimbursement of their costs from the employer will not affect eligibility of the applicant for NIL rate of tax in Sr. No. 3 of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017 and cor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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