9911796707
TMI Blog2021 (12) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany registered under companies Act, 2013. The Company engaged in manufacturing and exporting of Readymade Garments having its manufacturing plant at Gurgaon.- 1. To expand its operations, the Company has taken land from Ranchi Industrial Area Development Authority (RIADA) on lease for 30 years and is planning to set up an industrial unit for manufacturing of "Manufacturing of Garments". 2. As per the lease terms lessee is required to pay the upfront premium, which shall be total amount to be paid for lease. However, as per the terms of RIADA if the company is into mega IT industry/textile industry programme of RIADA then the company shall have option to pay land premium in 10 equal installments over a period of 5 years. Since the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the land premium/upfront premium, annual rent shall be Rs. 5,000/-per acre per annum which amounts to Rs. 20,000 (Rupees Twenty Thousand Only) and annual maintenance charges of Rs. 7,000/- per acre per annum which amounts to Rs. 28,000 (Rupees Twenty Eight Thousand Only) which shall be revised from time to time by the authority and shall be payable by the company. 2. The applicant sought Advance Ruling on the following questions/issues,- 1. The applicant is seeking the clarification on the imposition of the GST on the land premium to be payable to the RIADA. 2. What is the applicability of serial No. 41 of notification 12/2017 under heading 9972 of GST issued by the central government on the payment of upfront lease premium on future i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of GST on the One time upfront amount (called as premium, salami, cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (30 years, or more) lease of industrial plots provided by State Government Industrial Corporations. 5.2 Since the applicant as entered in to agreement with RIADA under the lease agreement for the period of 30 years for the lease of industrial plot provided by the state industrial development corporation, the upfront payment made against the land taken on Lease from RIADA is exempted from tax liability under GST, as the payment for lease is covered under Serial No 41 of notification 12/2017 dated 28.06.2017. 5.3 The applicant further submitted that S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do, hereby exempts taxable service provided by state Government industrial Development Corporations/ undertaking to industrial units by way of granting long term (thirty years, or more) lease of industrial plots from so much of service tax leviable thereon under section 66 B of the said Act as is leviable on the one time upfront amount (called as premium, salami, cost price, development charges or by any other name) payable for such lease." 5.5 The Applicant is has also submitted that the lease in question, prima facie satisfies the conditions of the said notification as follows:- (i) Lease is for 30 Years or more (ii) The Lessor is State Government or any industrial unit/corporation established by it. Now if his case satisfies that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sues on which Advance Rulings have been sought for by the applicant, relevant facts having bearing on the questions/issues raised, the applicant's understanding/interpretation of law in respect of the issue. 7.2 The applicant sought Advance Ruling on the two questions i.e.- (i) The applicant is seeking the clarification on the imposition of the GST on the land premium to be payable to the RIADA. (ii) What is the applicability of serial No. 41 of notification 12/2017 under heading 9972 of GST issued by the central government on the payment of upfront lease premium on future installments? 7.3 In view of the above, issues before us to decide whether the imposition of the GST on the land premium to be payable to the RIADA or not, we h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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