9911796707
TMI Blog2021 (9) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... E. They have sought Advance Ruling on the following question: Whether the pure services provided by M/s Mukesh & Associates, by way of rendering Consulting Service for Programme Management and Accompanying Measures for implementation of Integrated Storm Water Drain for M1 & M2 components of Kovalam Basin in the extended area of Greater Chennai Corporation supplied to the Superintending Engineer, Storm Water Drain Department, Greater Chennai Corporation, Chennai are exempted from payment of GST as per the S.No.3 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they are supplying services of Consulting Engineer, Architects Services and Technical Testing, Inspection, Certification, etc. and they have been given letter of Acceptance dated 28.10.2020 by the Superintending Engineer, Storm Water Drain Department, Greater Chennai Corporation, Chennai for execution of Consulting Services for Program ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem in delivering better tax compliance and following the statutory provisions scrupulously. 2.5 In support of their statement of relevant facts having a bearing on the question raised, they have relied upon Karnataka Advance Ruling Authority order vide Ref. KAR ADRG 52/2020 dated 09.10.2020 in respect of M/s Vimos Technocrats Private Limited., Bengaluru. They have stated that in view of the above, they are of the strong view that the services of execution of Consulting Services for Programme Management and Accompanying Measures for implementation of Integrated Strom Water Drain for M1 & M2 Components of Kovalam Basin in the extended area of Greater Chennai Corporation supplied to the Superintending Engineer, Strom Water Drain Department, Greater Chennai corporation are exempted from payment of GST by virtue of S.No.3 of the Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017. 3.1 Due to the prevailing PANDEMIC situation and in order not to delay the proceedings, the applicant was addressed through the Email Address mentioned in the application to seek their willingness to participate in a virtual Personal Hearing in Digital media. The applicant consented and the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectly from the Greater Chennai Corporation (GCC): The consortium partners will receive the payments directly from GCC through KfW in their bank accounts in accordance with the method of payment stipulated in the Special Conditions of Contract (SCC). Accordingly, Mukesh & Associates will receive payments directly from GCC through KfW and the respective amount will be credited in the bank account of Mukesh & Associates mentioned in the SCC. Extract from contract agreement is enclosed as Annexure-4' (Annexure-4: 'Method of payment' (Bank Account details of Mukesh & Associates)-Direct Payment (Contract Agreement page No.39 & 40 of 959). 3.3 The Registry vide Notice in Ref.ARA No.03/2021 dated 12.04.2021 requested the applicant to furnish the following: 1. Copy of Agreement 2. Write up on what capacity they are seeking the ruling. 3.4 The applicants in response to the Notice from Registry submitted Consulting agreement and stated that they are seeking exemption under GST and they are one of the members of the Consortium which entered into Agreement with Greater Chennai Corporation for providing "Pure Services" falling under serial number 3 of Notification No.12/2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; * Quantity Surveying AMC (Accompanying Measures Component) * Administration of the AM fund and directly responsible for procuring the services of experts and consultants for the utilization of the fund. Also, the development and monitoring of a Financial Sustainability Plan. * Identifying innovative partners for collaboration as well as for developing and managing the institutional change process within GCC. * Developing and managing outreach and communication measures with the Programme population, Residents Welfare Associations (RWAs)/Ward Committees/other civil society as well as within the PEA and other relevant agencies. 4. The State Jurisdictional authority, Assistant Commissioner (ST), Alagapuram Circle, Salem who has the administrative jurisdiction over the applicant vide Ref.No.226/2021/A1 dated 10.03.2021 has stated that there are no pending proceedings on the subject issue and had offered their comments on merits of the issue as follows: A thorough verification of the documents furnished by the applicant, clearly lead to the conclusion that the services rendered by Tvl.Mukesh & Associates, Salem fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Germany (hereinafter referred to as KfW) and the Lead partner GITEC-IGIP India Pvt. Ltd Jaipur, India and GITEC-IGIP GmbH, Cologne, Germany, in Joint Venture with Mukesh & Associates, Salem, India, N K Buildcon Pvt.Ltd., Jaipur, India for the Project Programme Management and Accompanying Measures for the Chennai Storm Water Drainage, M1 and M2 Components of Kovalam Basin" (BMZ-no.2014.680.99, 2017.704.37). The applicant vide their letter dated 04.08.2021 has clarified that the ruling is sought on their individual capacity in respect of services being directly rendered by their personnel to GCC for which they receive invoice on GCC and receive payment. 7.2 On perusal of the Contract, copy of which has been furnished by the applicant, the following are observed: * The contract is executed between GCC and the Consultant, the unincorporated Joint Venture with GITEC-IGIP India Pvt. Ltd Jaipur, India and GITEC-IGIP GmbH, Cologne, Germany as Lead Partner and applicant & N K Buildcon Pvt Ltd and Members; * As per the Joint Venture Declaration (annexure-l of the agreement), o The members of the JV shall be jointly and severally liable for performance of the project o the registere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ldcon- Mukesh & Associates. The applicant in his individual capacity is different from the JV, in which he is a member. The 'project' is awarded to the JV and not to the applicant. 8. As per Section 95(a) of the GST Act read with Section 103 of the Act, the term 'advance ruling' means a decision provided by this authority to the applicant on matters or questions specified in sub-section (2) of Section 97, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant and the ruling is applicable to only such person, the Jurisdictional Authority of Such Person and the Concerned Authority. Thus it is seen that only an applicant who satisfies the condition mentioned in Section 95 can apply for Advance Ruling. Section 95 (a) is reproduced as below : Section 95 : In this Chapter, unless the context otherwise requires,- (a) "advance ruling" means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100, in relation to the supply of goods or services or both being undertaken or proposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
