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2019 (10) TMI 1134 - AUTHORITY FOR ADVANCE RULING, KARNATAKARate of tax - sub-contractors who executes the works contract work like supply of goods or services or both pertaining to Railways based on the order received from the main contractor who got the work order directly from Railways - composite supply or not - applicability of N/N. 11/2017- Central Tax dated 28.06.2017 as amended - relevant date of applicability of the notification. HELD THAT:- The main contractor has obtained the contract from M/s Dedicated Freight Corridor Corporation of India Limited (“DFCCIL”) and then subcontracted to the applicant. The work is related to “supply and installation, testing and commissioning of automatic signaling equipment of Indoor and Outdoor, LC Gates” as per the requirement of DFCCIL - Since this involves the works related to railway network, the contract can be said to be pertaining to Railways. The term “pertaining to Railways is more expansive and includes other establishments other than Indian Railways. Hence the contract is pertaining to Indian Railways. Hence the sub-contract work is covered under the entry 3(v) of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No.20/2017- Central Tax (Rate) dated 22.08.2017 and is liable to tax at 12% (6% CGST + 6% SGST or 12% IGST) w.e.f. 22.08.2017. Prior to 22.08.2017 it was taxable at 18% under entry 3(ii) of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017.
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