TMI Blog2020 (7) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... omposite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a panchayat under article 243G of the constitution or in relation to any function entrusted to a Municipality under article 243W of the constitution. Whether the services rendered by the applicant are pure services? - HELD THAT:- The Services rendered by the applicant as seen from the record, are devoid of any incorporation of goods in the process of supply and the agreement copy between the applicant and Tirupati Smart City Corporation Limited reveals the same citing the approximate value of the work to be done under the agreement for a sum of ₹ 18,64,00,000/- (Rupees Eighteen Crore Sixty Four lakh only) for 2,00,000 MT (Contract Price). Hence, they are classifiable as pure services, excluding works contract service and other composite supplies involving supply of any goods. Whether the service recipient i.e., M/s. Tirupati Smart City Corporation is a Governmental Authority as per the definition of Notification No: 12/2017 Central Tax (Rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have invited tenders for Solid Waste Management Project - Remediation of Existing MSW Dumpsite at Ramapuram through Bio-Mining Process under implementation of the Smart City Mission in Tirupati and M/s ZEGS was awarded with the project. As per the Request for Proposal document (the RFP ), the Tirupati Smart City Corporation Limited ( TSCCL ) intends to enter into a DESIGN-BUILD- OPERATE (DBO) system contract with a Private Service Provider to implement the project on Remediation of Ramapuram Dumpsite through Bio-mining process (herein after referred as Project). The project would involve Design, Erection, Operation and Maintenance of the Bio-mining plant with an ultimate intention to reclaim the existing solid waste dumpsite in the said process in a scientific manner at Ramapuram dumpsite in TMC area. Further as per, Volume 2: Scope of Work including Schedule of Supply, Functional Technical Specifications are as under: A. WORK REQUIRMENTS 1. SCOPE OF WORK - GENERAL 1.1 SORTING SEGREGATION a. The Contractor after agreement should prepare and submit detailed project report covering a comprehensive Bio-mining Reclamation Plan. This would als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und level. g. The transportation and storage of the inert material and the compost material shall entirely be under the scope of the bidder under this project. 1.2.1 SITE DEVELOPMENT FACILITIES a. The TMC shall assist successful bidder in getting the access to the dumpsite with a license to the Contractor to implement the project Remediation of Ramapuram Dumpsite through Bio-mining process system. b. The Contractor should carry out necessary geotechnical surveys for considering the hydrological and flooding potential at sites, in order to mitigate any effect on the activities during bio-mining in terms of leachate transport. c. The site which shall be utilised for Machinery and material under Bio-Mining process shall be fenced or hedged and provided with proper gate to monitor incoming vehicles or other modes of transportation. d. Contractor should provide weighbridge to measure quantity of various components of waste at dumpsite is processed in terms of sorting and segregated materials, RDF, compost material, and inserts going out of the site. e. The Contractor shall also provide fire protection measures and safety equipment. f. The Cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the TMC for successful engagement of this Contract. f. The Contractor will involve community participation and discuss with the citizen community in order to ensure a free flow of information. 1.2 COMPLETION EXIT At the end of the Contract period, the Contractor will leave the site along with all his equipment and facilities used and handover the clean area and capped area of inerts without claiming any compensation of whatever nature. 4. Questions raised before the authority: The applicant had filed an application in form GST ARA-01, Dt:11.12.2019, by paying required amount of fee for seeking Advance Ruling on the following issues, as mentioned below: 1. Classification of the services provided by the Applicant. 2. Whether services provided by the Applicant are exempted under SI.No.3 of Notification 12/2017 dated 28.07.2017 as amended? 3. Whether the service recipient i.e., M/s. Tirupati Smart City Corporation is a Governmental Authority as per the definition of Notification No: 12/2017 Central Tax (Rate) dt:28.06.2017. 4. Whether the Governmental Authority is liable to deduct TDS as per the provisions of section for the services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply any goods in what so ever manner. With reference to the question whether M/s. Tirupati Smart City Corporation is a Governmental Authority as per the definition of Notification No.12/2017 Central Tax (Rate) dated 28.06.2017, the following submissions are made: The Governmental Authority has been defined as under, as per Notification No.12/2017 Central Tax (Rate) dated 28.06.2017. (zf) governmental authority has the same meaning as assigned to it in the Explanation to clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017); Further explanation to clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) reads as (16) non-taxable online recipient means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory. Explanation .- For the purposes of this clause, the expression governmental authority means an authority or a board or any other body ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Annexure). In the following cases the Hon'ble Advance Ruling Authority of Andhra Pradesh has considered the definition of the Government Authority as per Notification No: 12/2017 Central Rate dated 28/06/2017 as amended. 1. M/s Sealwel Corporation Private Limited, AAR NO.03/AP/GST/2019 dated:30.01.2019 = 2019 (1) TMI 1669 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH . 2. M/s GVS projects Private limited AAR NO.04/AP/GST/2019 dated:30.01.2019 = 2019 (1) TMI 1671 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH . 3. Amaravathi Metro Rail Corporation Limited AAR/AP/07(GST)/2018 dt. 02.07.2018 = 2018 (11) TMI 400 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH . The findings and decisions taken by the Hon'ble AAR is squarely applicable to the instant case of Tirupati Smart City Corporation Limited as the shareholding and control is 100% by Government of AP. From the above it is understood that Tirupati smart city corporation limited squarely falls under the definition of governmental authority as per explanation to clause (16) of Section 2 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017). With reference to deduction of T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olid Waste (MSW) Management Company, which offers solutions involving segregation, treatment, recycling of Municipal Solid Waste (MSW) and thus clearing MSW landfills. The applicant seeks clarity in this regard whether the nature of the activities of the applicant falls under SAC Code No: 9994 Sewage and waste collection, treatment and disposal and other environmental protection services as per Annexure to Notification No: 11/2017 Central Tax (Rate) dt. 28.06.2017. We concur with the opinion of the applicant after a thorough examination of the nature of the services of the applicant by classifying them under Sl.No.32 of Heading 9994 of Notification No: 11/2017 Central Tax (Rate) dt. 28.06.2017. Subsequently now we examine whether services provided by the applicant is exempted under SI.No.3 of Notification 12/2017 dated 28.07.2017 as amended Si.No.3 of the above notification describes pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 'equity' part is concerned, Tirupati Smart City Corporation Limited (TSCCL) is a limited company incorporated under the Companies Act, 2013 in which the Andhra Pradesh State Government and the Tirupati - Municipal Corporation are the promoters having 50:50 equity share holding, which substantiates more than 90% of participation of the Government. With reference to the 'control' wielded by the shareholders, all of the shareholders are Governmental Authorities nominated on the body of the TSCCL as mentioned here under; 1) Governor of Andhra Pradesh represented by Principal Secretary, MA UD GoAP. ' 2) Commissioner and Director of Municipal Administration, GoAP, Hyderabad. 3) Engineer -in- Chief, Public Health Department, GoAP. 4) Director of Town and Country Planning, GoAP. 5) Municipal Corporation of Tirupati represented by its Commissioner. 6) Additional Commissioner, Tirupati Municipal Corporation 7) Examiner of Accounts, Tirupati Municipal Corporation and 8) Superintending Engineer, Tirupati Municipal Corporation. The composition of the body leaves no further doubts regarding the complete control wielded by the Go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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