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TMI BlogCertain Activity or Transaction whether it is Supply of Goods or Services- Para 5 Schedule II Read with Section 7(1A)X X X X Extracts X X X X X X X X Extracts X X X X ..... n Schedule II whether it is Supply of Goods or Services - As per para 5 of Schedule II of CGST Act - Supply of services (a). Renting of immovable property - Supply of service * Renting in relation to immovable property means allowing, permitting, or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property. Also plant and machinery permanently embedded in the Earth or attached to the building are termed as immovable property. Such assets shall also be covered under this entry. * It must be noted that re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot; Construction " includes additions, alteration, replacements or remodeling of any existing civil structure. Example A : - Mr. A booked a flat during the under construction of building and give a token money of Rs. 10,000/- to builder for booking a flat, it is deemed to supply of services and liable to GST on entire value of flat even if part of consideration received after receipt of completion certificate. Example B : - Mr. A booked a flat during the under construction of building and does not give any money to builder for booking a flat and take handover of flat after when builder received completion certificate form competent authority, it is deemed to supply of services and not liable to GST. (c). Temporary transfer or per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable only if the place of provision of service of temporary transfer of intellectual property right is in taxable territory. Transfer of IPR is Taxable under GST: - Both the permanent transfer of IPR and temporary transfer are subject to GST. Temporary transfer includes permitting use or enjoyment of IPR. (d). Development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software - Supply of service * This entry mainly covers the customized software (i.e., uncanned software). However, the law is silent about the canned software, which is generally sold through a medium, such as DVD, pen drive etc. Meaning of the term "information technology software" as per expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delivered to the client on media like a CD then would the transaction fall in this declared entry or would it be covered by the TCS Judgement? In such a case although the software is finally delivered in the form of goods, since the contract is essentially for design and development of software it would fall in the declared list entry. Such a transaction would be in the nature of composite transaction involving an element of provision of service, in as much as the contract is for design and development of software and also an element of transfer of title in goods, in as much as the property in CD containing the developed software is transferred to the client. However, the CD remains only a media to transmit or deliver the outcome of whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rotect its sunlight, or an industrial unit refraining from manufacturing activity during certain hours against an agreed compensation paid by a neighbouring school, which wants to avoid noise during those hours. (b) when a person agrees to obligation to tolerate an act or a situation - This would include activities such a shopkeeper allowing a hawker to operate from the common pavement in front of his shop against a monthly payment by the hawker, or an RWA tolerating the use of loud speakers for early morning prayers by a school located in the colony subject to the school paying an agreed sum to the RWA as compensation. (c) when a person agrees to obligation to do an act - This would include the case where an industrial unit agrees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by a power distribution company from the customers; * iv. Penalty paid by a mining company to State Government for unaccounted stock of river bed material; * v. Bond amount recovered from an employee leaving the employment before the agreed period; * vi. Late payment charges collected by any service provider for late payment of bills; * vii. Fixed charges collected by a power generating company from State Electricity Boards (SEBs) or by SEBs/DISCOMs from individual customer for supply of electricity; * viii. Cancellation charges recovered by railways for cancellation of tickets, etc. (f). Transfer of rights to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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