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TMI Blog2022 (4) TMI 1398X X X X Extracts X X X X X X X X Extracts X X X X ..... ner for the purpose of payment of Goods and Service Tax ("GST")? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, 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 FACTS: 2.1 CLR Skills Training Foundation, the Applicant, is a Not-for-Profit Company registered under Section 8 of the Companies Act, 2013, and is also registered under the CGST Act, 2017, read with Rule 10(1) of the CGST Rules, 2017. 2.2 With an objective to offer on the job practical training to enhance employability of a person either pursuing his or her Post /diploma in any technical or non-technical stream or has discontinued studies after Class 10th, Ministry of Human Resource Development, Govt. of India, through All India Council for Technical Education ("AICTE") has launched a program known as Nation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of Trainer/Applicant. (c) Trainer shall be solely responsible for providing adequate facilities in accordance with AICTE (NEEM) Regulations or as may be deemed appropriate by the Applicant for the training. (d) Trainer shall reimburse to the Applicant, the monthly stipend payable to NEEM Trainees along with other expenses incurred by the Applicant in accordance with AICTE (NEEM) Regulations to ensure wealth, safety and health of NEEM Trainees like workmen compensation insurance premium health insurance premium, uniform, safety shoes etc. (e) Trainer shall further pay a fixed monthly administrative fee to the Applicant. In addition, Trainer shall also pay a one-time sourcing fee to Applicant for NEEM Trainees sourced by the Applicant. (f) the above amounts are separately mentioned in the invoice raised by the Applicant on Trainer. Hereto annexed and marked Exhibit "Fl" and "F2" are the specimen invoice raised by the Applicant on LG Electronics India Private Limited and lnterplex Electronics India Pvt. Ltd. 2.8 Based on the above facts, Applicant wishes to confirm its understanding that the reimbursement amount received from Trainer towards "Stipend and other expenses inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice Tax, Bangalore [2009 (13) S.T.R. 147 (Tri-Bang.)), wherein, the Hon'ble Tribunal has held that reimbursement of payments made on behalf of service recipient are not includible in the value of service provided by the service provider. 2.16 Hence, the Applicant is not required to include the reimbursement of "Stipend amount and other expenses incurred by the Applicant, in the value of taxable supply made by the Applicant to Trainer for the purpose of payment of GST. Additional Written Submission filed during personal hearing held on 01.02.2022 2.17 The role of the Applicant can be summarized as under: (i) Preparation of monthly attendance record of the NEEM Trainees and getting it certified from the NEEM Trainer. (ii) Processing and payment of stipend to NEEM Trainees. (iii) Providing uniform and safety shoes (as per requirement of NEEM Trainer) to NEEM Trainees. (iv) Take insurance policies towards workman compensation and personal occident specifying name of the NEEM Trainee and NEEM Trainer. 2.18 For carrying out the above functions, the Applicant gets a fixed administrative per NEEM Trainee from the NEEM Trainer and also gets reimbursement of the actual expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submissions, the applicant has stated that it has partnered with various companies/industries under AICTE (NEEM) Regulations as NEEM Trainer for deployment of NEEM Trainees and facilitation of their on-job training and the applicant has annexed and marked as Exhibit "El" and "E2", specimen copies of the Training Collaboration Agreement dated 07.03.2019 entered between the Applicant and LG Electronics India Private Limited and Training Services Agreement dated 12.02.2019 between the Applicant and Interplex Electronics India Pvt. Ltd. Thus, the applicant has submitted that the specimen copies are similar to the agreements that they have entered into with the various companies/industries under AICTE (NEEM) Regulations as NEEM Trainer for deployment of NEEM Trainees and facilitation of their on-job training. 5.3 We therefore take up the impugned Agreements as under:- 5.3.1 Training Collaboration Agreement dated 07.03.2019 entered between the Applicant and LG Electronics India Private Limited 5.3.1.1 We find that the copy of the said Training Collaboration Agreement does not contain the signatures of the Authorized Signatory/Signatories of LG Electronics India Private Limited (LG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pertaining to CLR Skill's(applicant's) obligations, it is seen that CLR Skills (applicant) agrees to ensure compliance with respect to welfare, safety and health aspects of the NEEM Trainee under the applicable laws and also, from Clause 4 (c) of the said Agreement pertaining to CLR Skill's (applicant's) obligations, it is seen that CLR Skills (applicant) will be liable for the compensation in accordance with the provisions of the Workmen Compensation Act, 1923 in case of any personal injury to the NEEM Trainee by any accident arising out of or in the course of his/her training. It is also seen from Clause 4 (e) of the Agreement that, all NEEM Trainees deputed for Company shall, remain to be engaged as Trainees by CLR Skills only, for the purpose of payment of stipend or other required contributions that may arise out of such arrangement. 5.3.2.3 Thus, from para 5.3.2.2 above, it is clear that the whereas Agreement mandated the applicant as responsible for the purpose of payment of stipend or other required contributions in respect of the NEEM Trainees, statement of Work attached (Sr. No. 4 of the 'Other Terms and Conditions') to the said Agreement mention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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