9911796707
TMI Blog2022 (7) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... icant has sought Advance Ruling on the following questions:- 1. Whether the exemption of GST on the intra-state supply of services of description as specified against SI.No.23 in Col(3) of the Table to Notification No. 12/2017-CT(rate) dated 28.06.2017, Viz services by way of access to a road or a bridge on payment of toll charges falling under the heading 9967, from so much of the central tax leviable thereon under sub-section (1) of Section 9 of the said act, as amended is applicable to the applicant as well. 2. Whether the value of toll charges (which attracts NIL rate as pointed out in (i) above is liable to be included in the value of outward supply of service? 3. Whether the applicant is liable to pay tax on the toll charges also by adding to outward value of supply of service. 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 SI.No.23 of Notification No. 12/2017 Central Tax (Rate) dated 28/06/2017 as amended exempts the intra-State supply of servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities falling under Heading 9967 would be defeated if a narrow interpretation is assigned to exempt certain category and tax the others in indirect way. Therefore, it is just and proper to rule that such unconditional exemption is applicable to all including the supplier of services availing the said exempted service during the course of providing outward supply of service. 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 hearing was held on 19.04.2022. The Authorised Representative Shri A.T Sridharan and Shri Ganesan (for NTL India Private Limited) appeared for the hearing and reiterated their submissions. The Member sought clarification as to whether they supply services of providing access to road for a toll charge as they have sought the applicability of the exemption provided to such suppliers, for which the AR replied that they are providing only passenger transport services and incurring toll charges which is shown separately in the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Ltd. * Invoices raised on India Yamaha Motor Pvt Ltd * Invoices raised on Cognizant Technology Solution India Pvt Ltd 3.3 On perusal of documents submitted by the applicant as listed above, it was observed that they had submitted details pertaining to the activity of renting services (996601). However they have not submitted details pertaining to activities falling under SAC 996799 which have been said to be undertaken by them. Further the copy of agreement entered into with M/s. Cognizant Technologies was found to be unsigned and lacking specifications on deliverables/scope of work. Hence they were asked to furnish these details vide notice dt.04.05.2022. Reminder dt. 19.05.2022 was also issued. In response the applicant has vide their letter dt.24.05.2022 submitted that they are registered for providing Rental services of road vehicles including buses, coaches , cars, trucks and other motor vehicles with operator classified under HSN code 996601; that the other part of the support service viz., Other transport services classified under HSN Code 996799 is also registered for providing the said service occasionally and not on regular basis; that the ARA is filed seeking the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e heading 9967, from so much of the central tax leviable thereon under sub-section (1) of Section 9 of the said act, as amended is applicable to the applicant as well. 2. Whether the value of toll charges (which attracts NIL rate as pointed out in (i) above is liable to be included in the value of outward supply of service? 3. Whether the applicant is liable to pay tax on the toll charges also by adding to outward value of supply of service. From the submissions, it is seen that the applicant is utilizing the services of toll i.e., services by way of access to a road on payment of toll charges and are thus recipients of such service. 6.2 To examine the admissibility of above questions, the relevant legal provisions are analysed as under: Section 95 (a) of CGST and TNGST Act defines 'advance ruling' as,- 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (2) The value of supply shall include- (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the Slate Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of or be fore delivery of goods or supply of services; Applying the above provisions, it is seen that the supply of renting of road vehicles is carried out by the applicant to their clients and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the agreement (page 1) are as below:- 1. The company requires "Services" as defined /described in the Schedule for the transportation of their employees... 2............... 3. The company, based upon the contractual obligations with NTL has decided to engage NTL to perform the service under the terms and conditions mentioned below. 4. The company has authorized TPMS India to organize and monitor the operations of NTL Travels and to submit the reports to the Company in their respective formats. From the above excerpts, it is established that the applicant has been engaged by their clients only as a service provider of transportation services and not as an Agent. The Applicant, being the service provider of transportation service, is the recipient of the service provisioned on payment of toll. Such charges are costs incurred, so that his vehicles can access roads/bridges to provide transportation services to the recipient. Hence they are the beneficiary and liable to pay the toll, which is compulsorily levied on the vehicles. The expenses so incurred are, therefore, cost of the service provided to their service recipients. Reimbursement of such cost is no disbursement, but ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
