Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2019 (9) TMI 513

..... nsideration received for the management services provided - exemption in terms of Sl.No. 3/3A/4/5 of N/N. 12/2017-CT(Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017, as amended from time to time. HELD THAT:- The Applicant has been set up under Notification No. HF/SPSRC/WBMSC/40/2008/162 dated 17/1 1/2008 of the Department of Health & Family Welfare, Government of West Bengal, as a fully owned body for managing the procurement of drugs and equipment for the medical colleges and hospitals and construction and maintenance of health facilities - Section 153(1)(a) of the 1973 Act empowers the Zilla Parishad [Art 243(d) of the Constitution defines a Panchayat as an institution of self-government constituted under Art 243B. Such a Panchayat, according to section 2(15b) of the 1973 Act, includes a Zilla Parishad] to undertake schemes and adopt measures for public health and sanitation, including establishment and maintenance of dispensaries and hospitals. Managing procurement of drugs and equipment for the medical colleges and hospitals and construction and maintenance of health facilities is an activity in relation to establishment and maintenance of hospi .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... Health & Family Welfare, Government of West Bengal. 1.2 The Applicant seeks a ruling on whether exemption in terms of Sl.No. 3/3A/4/5 of Notification No 12/2017-CT(Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017, as amended from time to time (hereinafter collectively referred to as the Exemption Notification ), is available on such administrative cost, which, according to the Applicant, is the consideration received for the management services provided. 1.3 The concerned officer from the Revenue objects to the admission of the Application on the ground that questions on which an advance ruling can be sought under section 97(2)(a) to (f) do not include rate of tax. 1.4 Section 97(2) (b) of the GST Act empowers this Authority to pronounce a ruling on the applicability of a notification issued under the GST Act. A question on the rate of tax or exemption, as the case may be, examines the applicability of any entry of the notifications issued under the GST Act, specifying the rate of tax or exemption from payment of tax. The question raised by the Applicant, therefore, involves ascertaining the applicability of the specific provisions of the Exempt .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... the employees of such statutory authorities or bodies do not become Government Employees while rendering their services in those entities. He also refers to Para 2.4.1 0 of the Education Guide of CBEC published on 20/06/2012 to emphasise that such regulatory bodies or autonomous entities would not comprise either Government or local authority. 3.2 The concerned officer from the Revenue does not agree that the Applicant s service is an activity in relation to the function entrusted to a Panchayat or a Municipality. There is no evidence that the Applicant is engaged directly by a Panchayat/Municipality. 3.3 Finally, projects or procurements involve the supply of goods. The Services rendered by the Applicant are, therefore, far from being pure service. Moreover, the Applicant submits no evidence to support any claim that the supply of goods involved constitutes only 25% of the value. 4. Observations & Findings of the Authority 4.1 In its Circular No. 51/25/2018-GST dated 31/07/2018 the Central Government clarifies that the service tax exemption under Sl No. 25(a) of Notification No. 25/2012 dated 20/06/2012 (hereinafter the ST Notification) has been substantially, although not in .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... to supply to the Central or State Government, local authority, a Governmental Authority or a Government Entity. The recipient is not, therefore, limited to a Panchayat or a Municipality, but the service rendered must not include supply of goods. Sl No. 4 or 5 of the Exemption Notification widens the ambit to include any service by a governmental authority to any recipient, provided it is an activity relatable to a function listed under the Eleventh or the Twelfth Schedule under Art 243 G or 243 W of the Constitution. The Applicant s question should, therefore, be examined from two aspects: whether the Applicant is a governmental authority as defined under para 2(zf) of the Exemption Notification, and whether the service it provides is an activity relatable to a function listed under the Eleventh or the Twelfth Schedule under Art 243 G or 243 W of the Constitution. 4.5 According to para 2(zf) of the Exemption Notification, a governmental authority means an authority or a board or any body (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent or more participation by way of equity or control, to carry out any function entru .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||