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2019 (10) TMI 797 - AAR - GSTValuation - service of transportation to the employees of the tenants of the business park - inclusion of value of bus passes distributed by the applicant to the Commuters in the value of facilitation charges - section 15(2) of the CGST Act, 2017 and KGST Act, 2017 - supply service in the hands of the applicant could be classified as merely a supply of facilitation services between and the commuters. HELD THAT:- The service is that of services of a chartered bus and the consideration is charged by the BMTC in the form of bus passes. The value of 50 passes is the consideration for the provision of service provided by the BMTC. Regarding the recipient of service, it is seen that the consideration for this Service is payable by the applicant and clause (93) of section 2 of the CGST Act, makes it amply clear that the person who is liable to pay the consideration is the recipient of service -and in this case, the applicant is liable to pay the consideration and hence would be the recipient of service under the GST Act. The services provided by BMTC to the applicant are covered under SAC 996413 - Non Scheduled Local Bus and Coach Charter Services. The Services are provided by the BMTC to the applicant and the applicant collects the consideration of the bus passes plus the service charges and provides the same services. Coming to the services provided by the applicant to the actual passengers, the applicant is providing transportation services and the applicant is required to arrange alternate services to the commuters in Case BMTC ceases to provide the transport services wholly or in part - Further, the bills issued by the applicant are verified and found that the bills are issued to the Companies in the ITPB and not to the individual commuters. The applicant is valuing the service only to the extent of the additional amount charged as facilitation charges and collecting the balance amount as monthly pass amount and paying the taxes only to the extent of facilitation charges. The Commuters. or the Companies are not party to the contract between the applicant and BMTC and the applicant is providing the services after obtaining the same from BMTC. The contention of the applicant that he is an intermediary is incorrect in that the applicant is receiving the services provided by BMTC for the aforesaid reasons and the applicant is providing the services to his clients. Value of services - HELD THAT:- The total amount charged to the service recipient by the applicant would be the value of services supplied as per Section 15 of the CGST Act, 2017. Hence the value of the monthly passes issued plus the facilitation charges charged by the applicant and such other amounts which form the part of the Value of supply as specified in Section 15 Would be the Value of supply of the services provided by the applicant to the commuters.
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