9911796707
TMI Blog2020 (9) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... LOHA" to customers. They sell products like books, stationary etc. without having profit margin under the brand name of "ALOHA". They offer various courses to students Mental Arithmetic, English Smart under the brand name of "ALOHA". All receipts of product sale or services are being taken in the name of their partnership firm "PATRATOR" and deposit the fees in their partnership firm bank account. At the end of every fifteen days, they pay royalty to their franchisor, KNOWLEDGE RESOURCES LLP, Rajkot based on fees they collect from their customers. 4. The applicant submitted that total yearly receipt of their partnership firms PATRATOR does not exceeds Rs. 20 lacs in any financial year; however an annual receipt of the franchisor, KNOWLEDGE RESOURCES LLP, Rajkot exceeds Rs. 20 lacs. 5. The applicant has submitted the copy of agreement held between the applicant and Explore Knowledge Resources LLP for franchisee of "ALOHA". 6. Accordingly, the applicant sought the advance Ruling on the following question 1.) Is PATRATOR required to take GSTIN ? 2.) Is PATRATOR required to pay tax under GST Act? Personal Hearing 7. Personal hearing in the matter was held on 11-06-2020. Shri D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds or services or both, if his aggregate turnover in a financial year exceeds twenty lacs rupees: Provided that where such person makes taxable supplies of goods or services or both 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: Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified: Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified. Explanation.-For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; 9.3 The applicant has stated that they are selling the books, stationary and other item under the brand name of "ALOHA" and also providing service i.e. courses like Mental Arithmetic, English Smart to the students under the brand name of "ALOHA". All receipts/consideration on account of product sale or services are being taken in the name of their partnership firm "PATRATOR" and deposited in their partnership firm bank account. Further, they stated that consideration received on account of sale of product and providing service does not exceed Rs. 20 lakhs in a financial year. In terms of Section 22(1) of CGST Act, 2017, if aggregate turn over in a financial year exceeds an amount of Rs. 20 lacs on account of supply of goods and service, then person is liable to take GST registration. The applicant has stated his aggregate turnover o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect a one time Student Registration fee of Rs. 1150/- for Mental Arithmetic Sr. Program and Rs. 1150/- for tiny Tots Program, Rs. 650/- for English Smart Program from every student registered in their respective course and remit the same to the Company and forward a duplicate copy of the Student Registration/ application Form and receipt issued. C. The Franchisee understands and agrees that the Company shall have the right, notwithstanding anything to the contrary, to vary without prior notice, royalty payable by franchisee, the registration fees and monthly or level fee payable by the students and it shall be the sole responsibility of the Franchisee to collect such revised fee from existing/new students of the Course of various level as and when circumstances warrant the collection of such revised fee on the direction of the Company. VI. REQUIREMENTS The Franchisee agrees to fulfill the below mentioned requirements of infrastructure and manpower before commencement of operations of the Centre and will continue to possess it during the whole tenure and it's renewal of this contract. VIII . STOCK A. The Franchisee shall not use any other course material other than those suppli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also undertakes not to conduct, run and engage in any other courses or activities else than licensed in this agreement, that the company possess and franchisees. H. The Franchisee undertakes to fully promote and market the Company's Courses diligently and to the best of its ability. K. The Franchisee shall assure the Company that only a maximum of 18 students shall be admitted in each batch of each level of the Company's course to be conducted by the Franchisee. L. The Franchisee assures the Company that the premises and infrastructure wherein the courses are to be conducted by the Franchisee are in conformity with the specifications of the Company. O. The Franchisee shall only use the application forms, receipt books, fees lists etc. supplied by the Company and shall not attempt to print its own material other than those used for marketing purpose like pamphlets, leaflets etc. excluding broachers and with prior approval of the design from the Company. P. The Franchisee shall issue duly signed receipts for the payments received by it from students, by a duly authorized person of the Franchisee in the receipts books issued by the Company. Q. All the payments from the student ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
