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2020 (3) TMI 1322 - AAAR - GSTClassification of supply - supply of services or not - amount recovered from the employees towards car parking charges payable to Shanti niketan Properties Private Limited (building authorities) - valuation of the supply - pure agent or not - input tax credit on supply of car parking services to employees. Interpretation of the word 'easement' - HELD THAT:- In common parlance the word easement is defined as “a right to cross or otherwise use someone else's land for a specified purpose” - The appellant is providing right to its employee's to use parking facility on the parking space provided by the building authority and for this work they are collecting certain amount from their employee. Accordingly, the activity in question, provided by the appellant, is squarely falls under the Schedule II i.e. “Activities to be treated as Supply of Goods or supply of Service” of the CGST Act, 2017. Whether the service provided by the appellant would be in the nature of “pure agent”? - what Would be the value for the purpose of tax liability? - HELD THAT:- The Authority of Advance Ruling, Maharashtra, in the case of M/s. DRS Marine Services Pvt. Ltd. [2018 (12) TMI 893 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA], has observed that, “Applicant will be acting as a pure agent of RMS in as much as the entire amount received by them as Crews' Salary will be disbursed to the Crew and no amounts from the said receipt will be used by the Applicant for his own interest” - In the instant case also, it is observed that the appellant has contended that they are transferring the entire amount collected, from their employees towards parking charges, to the Building Authorities. Accordingly, the value of the services in the present case will be NIL, as the appellant is providing the same in the capacity of a Pure Agent, subject to the fulfillment of the conditions prescribed for “Pure Agent”. Input tax credit against supply of car parking services to employees - HELD THAT:- Though the activity undertaken by the appellant is a supply of service, in terms of Section 7(1) of the CGST Act 2017, however the value of the service would be nil, as the appellant is acting in the capacity of Pure agent for their employees, subject to the fulfillment of conditions. Accordingly the question becomes redundant.
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