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TMI Blog2018 (11) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... ance & with the permission and approval of the ITE&C department only. The applicant will be paid service charges @ 5% on e-procurement corpus fund and e-procurement Transaction Fee towards services rendered by the applicant, for which they are paying tax as an independent entity for the services rendered to ITE&C. Hence, the transaction fee collected on account of ITE&C Department, as custodian will not attract the liability under the provisions of law. Ruling:- It is “Supply” as defined in SGST Act,2017 and CGST Act, 2017. The liability does not arise due to the amounts so collected is for services rendered by State Government i.e., ITE&C Department as per the entry no 6 of notification 12/2017-Central tax (Rate), dated :28th June ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been addressed to the jurisdictional officer, i.e., Assistant Commissioner(ST) Patamata, for remarks regarding any proceedings are pending disposal against any authority in respect of the issues raised by the applicant. But so far, no reply is received. 4. In response to a hearing notice issued to the applicant, Sri C. Jacob Victor, Executive Director (FAC), an Authorised Representative on behalf of applicant, has appeared on 19.07.2018 and submitted his arguments. Facts of the case as submitted by the applicant: 5. The Government has taken up e-procurement as one of the major e-Governance initiatives. It automates the procurement and purchase procedures of A.P. Government starting from demand aggregation to procuremen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the applicant's Balance Sheet, since the amount is pertaining to ITE C Department. The applicant has not used any amount from the amount accrued from collection of Transaction Fee. 9. The Government has issued G.O.Ms.No.17, dated 31.10.2017 stating the applicant will be paid service charge of 5% on e-procurement Transaction Fee for the services rendered i.e., maintenance of accounts, co-ordination with service provider etc. Further, in the G.O., it is specified that balance 95% of e-procurement Transaction Fee shall be managed by the applicant in a separate account. These funds will be used for innovate projects taken up through the applicant with prior approval of ITE C Department, and the e-Procurement portal maintenance, suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance, and agency services provided to a person other than the Central Government, State Government, Union territory; (b) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (c) transport of goods or passengers; or (d) any service, other than services covered under entries (a) to (c) above, provided to business entities Further, G.O.Ms.No. 11, issued by Information Technology Communications Dept., e-Procurement, dt. 23.07.2010, in para-6, ordered as under; 6. The Government after careful examination hereby issued orders: i. APTS shall open account for the collection of transaction fee through e-procurement platform. ii. M/s. C1 India shall change t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of IT.E C Department. c. The IT.E C Department's share of 47.50% of e-Procurement Corpus fund and balance 95% of e-Procurement Transaction fee shall be managed by APTS in a separate account. These funds will be used for the innovative Projects taken up through APTS with the prior approval of IT.E C Department and e-Procurement portal maintenance, support, up gradation etc., as defined in G.O.3 rd read above. Observations of the Authority: The applicant has sought clarification where the tax liability arises on e-procurement transaction fee collected on behalf of ITE C Department. As per the information filed by the applicant, it is observed that the applicant is acting as fund-manager . The applicant was direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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