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2018 (11) TMI 487

filed by the applicant, it is observed that the applicant is acting as fund-manager. The applicant was directed by ITE&C Department, to open an account for collection of Transaction Fee relating to e-Procurement platform. Further, the applicant can not act independently for the utilization of funds without the approval of the ITE &C Department. Hence, the fund utilization, shall be in accordance & with the permission and approval of the ITE&C department only. - The applicant will be paid service charges @ 5% on e-procurement corpus fund and e-procurement Transaction Fee towards services rendered by the applicant, for which they are paying tax as an independent entity for the services rendered to ITE&C. Hence, the transaction fee collect .....

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tion on the following issues :- 1. Whether the e-procurement Transaction Fee collected on behalf of IT E&C department results in supply of goods or services or both, within the meaning of Supply as defined law. 2. Whether the Tax liability arises on e-procurement Transaction Fee collected on behalf of ITE&C department. On 12.07.2018, a letter has been addressed to the jurisdictional officer, i.e., Assistant Commissioner(ST) Patamata, for remarks regarding any proceedings are pending disposal against any authority in respect of the issues raised by the applicant. But so far, no reply is received. 4. In response to a hearing notice issued to the applicant, Sri C. Jacob Victor, Executive Director (FAC), an Authorised Representative on .....

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vice Tax authorities on the applicant Service Tax Registration Number. Now, the Government has implemented GST w.e.f. 01.07.2017 @ 18% in place of Service Tax. 8. Since, 2011 the Service Tax is paid with the applicant Service Tax Registration Number. No objections were raised and the balance Transaction Fee was not shown in the applicant's Balance Sheet, since the amount is pertaining to ITE&C Department. The applicant has not used any amount from the amount accrued from collection of Transaction Fee. 9. The Government has issued G.O.Ms.No.17, dated 31.10.2017 stating the applicant will be paid service charge of 5% on e-procurement Transaction Fee for the services rendered i.e., maintenance of accounts, co-ordination with service pr .....

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lowing services are taxable at 'nil' rate.... Services by the Central Government, State Government, Union territory or local authority excluding the following services- (a) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, State Government, Union territory; (b) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (c) transport of goods or passengers; or (d) any service, other than services covered under entries (a) to (c) above, provided to business entities Further, G.O.Ms.No. 11, issued by Information Technology & Communications Dept., e-Procurement, dt. 2 .....

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ion fee will be paid to APTS on monthly basis. b. Out of balance 95% of e-Procurement Corpus Fund, 47.50% shall be the share of respective user departments, which floated the tender and 47.50% shall be the share of IT.E&C Department. c. The IT.E&C Department's share of 47.50% of e-Procurement Corpus fund and balance 95% of e-Procurement Transaction fee shall be managed by APTS in a separate account. These funds will be used for the innovative Projects taken up through APTS with the prior approval of IT.E&C Department and e-Procurement portal maintenance, support, up gradation etc., as defined in G.O.3rd read above. Observations of the Authority: The applicant has sought clarification where the tax liability arises on e-procu .....

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applicant directed to obtain the procedure for remittance from the respective jurisdictional authorities. In view of the above observations & facts of the case, the ruling is given as under: RULING Question No. 1: Whether the e-procurement Transaction Fee collected on behalf of IT E&C department results in supply of goods or services or both, within the meaning of Supply as defined law? Reply : It is Supply as defined in SGST Act,2017 and CGST Act,2017 Question No.2: Whether the Tax liability arises on e-procurement Transaction Fee collected on behalf of ITE&C department? The liability does not arise due to the amounts so collected is for services rendered by State Government i.e., ITE&C Department as per the entry no 6 of n .....

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