9911796707
TMI Blog2019 (12) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... lier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- "The Applicant is a registered Charitable Trust, running a school, known as Maneckji Cooper Education School and is involved in educational activities since 1946. 2. The Applicant is a Trust registered under the Bombay Public Trust Act, 1950 as well as u/s 12A of the Income Tax Act 1961. 3. As per the last audited financial statements for the year ended 3 I st March 2017, the main sources of Income of the Applicant Trust were as under : Sr.No. Sources Gross Receipts in Lacs A Tuition Fees, Tutorial and Term fees from running the Maneckji Cooper School 787 B Income from forms, badges, files and other sundries relating to running of the school. 5 C Interest on securities, debentures, bonds, fixed deposits and savings accounts. 596 D Dividend on investments made. 20 E Royalty income from M/s. S. Chand & Co. 98 F Lease Rent of Plot of land at Peddar Road, Mumbai 0.1 G Advertisements receipts in school Magazine 1.5 The Applicant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir main object, to provide Education in the school run by them. During the financial year ending on 31/03/2018, amount received under the said head is Rs. 311788/-. Royalty Income: The applicant trust was earlier engaged in printing & publication of Education books compiled/written by Wren and Martin under rights given to the trust. Later on the applicant has stopped printing and publishing the said books and entered into agreements from time to time permitting S. Chand & Company Ltd. having it's registered office at Ram Nagar, New Delhi - 110055; allowing them to publish the said educational books for consideration payable from time to time, as per the terms of the different agreements entered into with them and renewed after expiry of terms of earlier agreement. Total receipt from S. Chand & Co. Ltd. during period ending 31/03/2018 is Rs. 9478946/- and tax on the same is paid on reverse charge mechanism by the said company at appropriate rate under GST Act, while discharging their liability under GST Act. Hence the applicant is not liable to make payment of tax on these receipts under Goods and Service Tax Act. School Fees: Gross total receipts from school fees including fees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. Further, as per Notification No. 10/2019-Central Tax, Any person, who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, except, - (a) persons required to take compulsory registration under section 24 of the said Act; (b) persons engaged in making supplies of the goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table; (c) persons engaged in making antra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and (d) persons exercising option under the provisions of sub-section (3) of section 25, or such registered persons who intend to continue with their registration under the said Act. Further as per definition given in section 2(6) of CGST/MGST Act, "aggregate turnover" means t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. Income from forms, budges, files and other sundries relating to running of the school Being supply of goods, items included under this subhead are not covered under notification mentioned in previous paragraphs. Further these items are covered under following entries and they are taxable in GST. Sr. No. Description HSN Code Rate (%) Related Export / Import HSN Code 1. Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non perforated punch-cards and punch tape paper, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803; hand-made paper and paperboard 4802 12 48021010, 48021020, 48022010, 48022090, 48024000, 48025410,48025420, 48025430, 48025440, 48025450,48025490, 48025510,48025520, 48025530,48025540, 48025550,48025560,48025570,48025590,48025610, 48025620,48025630,48025640,48025650,48025660, 48025670,48025690,48025710,48025720,48025730, 48025740,48025750,48025760,48025770,48025790, 48025810,48025820,48025830,48025840,48025850, 48025890,48026110,48026120,48026130,48026140, 48026150,48026160,48026190,48026210,48026220, 48026230,48026240,48026250,48026260,48026290, 48026 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Licensees agreed to pay the royalty to the licenser. Notification No 13/2017 dated 28th June 2017 is issued as per provisions of Section 9 of the CGST Act, 2017 notifying various categories of supply of services on which GST shall be paid by recipient of services. Notification No 13/2017 dated 28th June 2017 - Sr. No. Category of Supply of Services Supplier of Service Recipient of Service 1. Supply of services by, an author, music composer. photographer. artist or the like by way of transfer or permitting the use or photographer, artist, enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like. Author or music composer, or the like Publisher, music company, producer or the like, located in the taxable territory The Copyright Act, 1957 defines Author as - "author" means, - (i) in relation to a literary or dramatic work, the author of the work; (ii) in relation to a musical work, the composer; (iii) in relation to an artistic work other than a photograph, the artist; (iv) in relation to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uscripts, books, journals and periodicals. This service code includes licensing services for the right to reproduce, distribute or incorporate literary originals such as reprinting and copying of manuscripts, books, journals and periodicals Notification No 13/2017 dated 28th June 2017 allows authors to discharge their tax liberty in Reverse Charge Mechanism. However, this office is of opinion that, as the transaction done by applicant is covered under entry 9997344 which is taxable outward supply at 18% tax rate and is not covered under Reverse Charge Mechanism. 6. Lease rent of plot of land at Pedder Road, Mumbai SAC Code Description of Service Tax Rate 997211 Rental or leasing services involving own or leased residential property 18 997212 Rental or leasing services involving own or leased non-residential property 18 Hence, the transaction is taxable under GST. 7. Advertisement receipts in school Magazines For advertisement in school magazines, following SAC codes defines services related to it. SAC Code Description of Service Rate 998362 Purchase or sale of advertising space or time, on commission 18 998363 Sale of advertising space in print media (except ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant as well as the jurisdictional office. 5.2 We find that applicant is registered person under GST Act and receiving taxable income for goods/services supplied by them. 5.3 The subject application was admitted on the basis of oral contention and written submission made by the applicant. However, on perusal of the submissions and documents on record, we find that the query raised by the applicant is, whether they should surrender their existing GST registration. The questions posed by the applicant before us are reproduced as follows. 1) The applicant would like to know whether the registration under the GST Act should be surrendered. 5.4 We feel it necessary first to decide whether the questions raised by the applicant are covered under Section 97(2) of the CGST Act, 2017, and thus maintainable, or liable for rejection. Having said so, we invite attention to the questions that can be posed in an application for an Advance Ruling under the provisions of the GST Act. Sub-section (2) of Section 97 is the relevant section which is reproduced as below: (2) The question on which the advance ruling is sought under this Act, shall be in respect of- a. classification of any g ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
