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2021 (12) TMI 519 - AUTHORITY FOR ADVANCE RULING, TELANGANALevy of GST - renting of temporary residential rooms for consideration to the devotees and renting of space for shops and stalls for the purpose of religious programmers where the predominant object is not to do business but for advancement of religion - renting of temporary residential rooms as per the following categories, to the devotees to stay for the purpose of religious programs where charges per room is less than one thousand per day - renting of space for stalls, where the predominant object is not to do business but for advancement of religion - HELD THAT:- The applicant is a religious institution and is temporarily renting residential rooms for consideration and similarly they are also renting space for stalls for consideration. The understanding of the applicant is based on the pronouncement of Hon’ble Apex Court of India in the case of Commissioner of sales tax Vs Sai publication fund [2002 (3) TMI 45 - SUPREME COURT] wherein it was held that, where the main activity is not business, then any incidental or ancillary transaction, unless established by the revenue department to be an independent business transaction, will also be considered as charitable only and not business. Further it was also held that, where the main and dominant activity of the assesse trust in that case was to spread message of Sai baba, then brining out publications and sale thereof by the assesse trust to its devotees at cost price did not amount to business. The (5) member constitutional bench of Hon’ble Supreme Court of India in the case of PANKAJAKSHI VERSUS CHANDRIKA [2016 (2) TMI 1063 - SUPREME COURT] has held that general things do not derogate from special things. The Apex Court of India in a catena of case law has held that the statute laying down general scheme of operation has to make room for a special statute for which a separate and exclusive field is carved out by the legislature itself. Therefore the special entry 13 will prevail while determining the eligibility for exemption for services supplied by a person registered under Sec 12AA of the Income Tax Act. Thus, a. Renting of rooms where charges from ₹ 1000/- or more per day are taxable. b. Renting of shops for business where charges are ₹ 10,000/- or more per month are taxable.
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