9911796707
TMI Blog2019 (10) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in FORM GST ARA-01, discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a partnership firm engaged in the business of transportation of passengers and other ancillary & related services. The applicant also renders Employee transportation service to various corporate Companies using buses. 3. The applicant submitted that they have entered into a Composite "Operation and Maintenance of Employee Commutation Vehicles and Transportation Services Agreement" with M/s. Volvo Group India Pvt. Ltd., (hereinafter referred to as Volvo) in which the applicant is responsible for not only providing the buses but also maintaining them and running the same to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation services agreement" in which the applicant is responsible for not only providing the buses but also maintaining them and running the same towards employee commutation. The applicant is the owner of the buses and takes "Private Service Vehicle" Permits in the name of the Client. The applicant picks up of employees of the client from respective pick up stops and drop them in the client's factory/office and vice versa. The applicant further submitted that their services ideally fall under the Heading Passenger Transport Services with SAC 9964 (vi), liable to tax at 5% (CGST+SGST) without input or 12% (CGST+SGST) with Input Credit. PERSONAL HEARING: / PROCEEDINGS HELD ON 28.02.2019 7. Sri. Sudhindranath, Advocate and authorized rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... @ Rs. 84,504/- + Variable cost @ Rs. 55,809/-) for minimum operation of 2,640 kms and 22 working days in a calendar month from the M/s Volvo (client) for providing transportation services. Additional kilometers over and above 2,640 kms, the charges shall be Rs. 21/- per km as per the variable cost. The price was fixed when the cost of HSD at the rate of Rs. 66.35 per liter as on April 2018. 8.4 The services under SAC 9964 are related to "Passenger Transport Services". Entry No.8 of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 is related to the said service and consists 7 sub entries, out of which entry numbers i, iii, iv, v are not relevant to the instant case. Thus we examine entry number 8(ii) of the said Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specifically 996411 covers Local land transport services of passengers by bus. Further Entry (iii) to the said SAC 996411 includes "passenger transportation services over pre-determined routes on a pre-determined schedule within the confines of a single city or group of contiguous cities, for a specific segment of users, e.g., colleges or enterprises", which clearly covers the activity of the applicant. In view of the above, sub-entry 8(vii), which is the residual entry, is applicable to the instant case. 8.7 It is also observed from the said explanatory notes related to classification of services that the SAC 9966 covers "Rental services of transport vehicles with or without operators" and specifically the SAC 996611 covers "Rental servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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