TMI Blog2020 (2) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... parking space sought by the applicant. The initial Rent agreement copy is not provided by the applicant. Further as per the Employee Handbook provided by the applicant the amount to be recovered from monthly salary of employee availing the parking slots is around INR 1500 per month and INR 500 per month for a four wheeler and two-wheeler respectively . However we notice that this amount shown in the Employees Handbook is not tallying with the details of amount recovered from the employees provided by the party - Further, the 'trail of financial transactions to clarify the pure agent status of the company', as promised by the authorized representative of the applicant at the time of personal hearing, was also not provided by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been posted by the applicant, in his application dated 8-7-2019 (received by the Authority on 15-7-2019), before the Authority :- (i) Whether amount recovered from the employees towards car parking charge payable to Shantiniketan Properties Private Limited (building authorities), would be deemed as Supply of service by the applicant to its employees? (ii) If the first question is answered in affirmative, whether the value of aforesaid supply would be NIL, being provided in the capacity of a Pure Agent ? If valuation is not accepted as NIL, what would be the value of such supply? (iii) If GST is payable on the such amount recovered from the employees, whether the GST paid by the applicant to building authorities to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on 24-9-2019. Shri Ravi Jain, CA, and Shri Saket Batra, CA, Authorized representatives of the applicant, appeared for hearing. Sh. Diwakar Singh Bisht, Superintendent Range-IX, Division-ll, Noida, represented the department during personal hearing. During the course of personal hearing, certain issues were come up which were discussed in detail. The authorized representative stated that they would like to submit few more documents viz. copy of Employee Handbook , Agreement between Building Authorities and applicant, Trail of communication among employees, company and building authorities to explain the SOP, in few cases, trail of financial transactions to clarify the pure agent status of the company, Offer letter/ Employee Cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... similar provision under the CGST Act/UPGST Act would be mentioned as being under the 'CGST Act'. 10. We, have gone through the submissions made by the applicant and have examined the explanation submitted by them. At the outset, we find that the issue raised in the application is squarely covered under Section 97(2)(e) of the CGST Act, 2017 being a matter related to determination of the liability to pay tax on any goods or services or both. We therefore, admit the application for consideration on merits. 11. We observe that the questions sought by the applicant are - (i) Whether amount recovered from the employees towards car parking charge payable to Shantiniketan Properties Private Limited (building authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to in Schedule II. 14. The term Service is defined, as per sub-section (102) of Section 2 of the CGST Act, 2017, as : Service means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. 15. Here we observe that while defining the Supply emphasis has been made upon the term in the course or furtherance of business . Further, the term 'Business' has been defined under Section 2(17) of the CGST Act, 2017, as below : (17) business includes - (a) any trade, comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above referred letter is issued in response to the additional parking space sought by the applicant. The initial Rent agreement copy is not provided by the applicant. Further as per the Employee Handbook provided by the applicant the amount to be recovered from monthly salary of employee availing the parking slots is around INR 1500 per month and INR 500 per month for a four wheeler and two-wheeler respectively . However we notice that this amount shown in the Employees Handbook is not tallying with the details of amount recovered from the employees provided by the party. Further, from the letter dated 28th August, 2018, it seems that certain parking slots were allotted free of cost to the applicant. In this regard, the procedure a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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