TMI BlogRecent Advance RulingsX X X X Extracts X X X X X X X X Extracts X X X X ..... Recent Advance Rulings - By: - PRABHAKAR KS - Goods and Services Tax - GST - Dated:- 19-11-2019 - - Whether gifts distributed in furtherance of business are eligible to claim Input Tax Credit? IN RE: M/S. SURFA COATS (INDIA) PRIVATE LIMITED [2019 (10) TMI 568 - AUTHORITY FOR ADVANCE RULING, KARNATAKA] The applicant is engaged in the business of manufacturing of interior and exte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rior surface paints. In order to promote his business, the applicant gives incentives to its dealers in the form of goods and services including local and foreign trips without levying GST. Since free goods and service does not qualify as Supplies under GST Laws, the applicant sought an advance ruling on the aforesaid question. The Authority for Advance Ruling, Karnataka, relying on Section 7 , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Clause (h) of sub-section (5) of Section 17 of the Central GST Act, 2017 and CBIC Circular No. 92/11/2019 GST dated 07.03.2019 held that the applicant is not eligible to avail the Input Tax Credit under the GST Laws. Whether the volume discount received on the purchase and sale of vehicles are liable to GST? IN RE: M/S. KWALITY MOBIKES (P) LTD. [2019 (10) TMI 792 - AUTHORI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TY FOR ADVANCE RULING, KARNATAKA] The applicant is an authorized dealer of Harley-Davidson India who manufactures high-end two-wheeler motorcycles. Since the applicant is an authorized dealer, eligible for volume discount on both i.e. commission earned from retail sales and also on the purchase of over and above the prescribed sales target. Under this arrangement, the supplier will issue a cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit note which won t affect either selling or purchasing price. Hence, no such effect on GST collected in the invoices. The Authority for Advance Ruling observed that in both cases i.e. the amount received by the applicant as volume discount and commission received for selling more than targeted numbers are in the nature of incentive. Hence, the Authority held that volume discount received on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase and sale of vehicles without any adjustment is not liable for GST. Also, the Authority held that the applicant needs not to raise invoices in the aforesaid transactions. Whether the expenses incurred by the staff members on behalf of the company which periodically reimbursed attract GST? Whether RCM applicable to remuneration paid to the Directors? IN RE: M/S. ALCON CONSU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LTING ENGINEERS (INDIA) PVT. LTD. [2019 (10) TMI 793 - AUTHORITY FOR ADVANCE RULING, KARNATAKA] The applicant is in the business of providing consultancy services including surface survey, map making, project management consultancy services for construction projects, engineering advisory services to both Government agencies as well as the general public throughout India. The applicant general ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly incurs certain expenses, for instance, travelling expenses, reimbursement of transportation and food expenses, vehicle hire charges, mechanical charges among others. The applicant sought advance rulings on the aforesaid two questions. Clause 1 of the Schedule III of the Central GST Act, 2017 deals with certain activities and transactions required to be treated as a supply of goods or servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces. Further, consideration defined under clause (31) of Section 2 of the Central GST Act, 2017 covers such amount paid by the employee to the supplier of service as if it is paid by the above applicant himself. The reimbursed amount may not be a consideration, however, if tax is leviable, it shall be on the services rendered by the employee on behalf of the applicant irrespective of that amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt paid by the employee or the applicant though the same has been reimbursed later. As far as Director s remuneration concerned the company is located in the taxable territory and his remuneration paid for the services supplied by the Director to the applicant company. Hence, the Authority for Advance Ruling held that both amounts paid to the employees and remuneration paid to the Directors as ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xable and subject to RCM respectively. To be continued . - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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