9911796707
TMI Blog2018 (10) TMI 1875X X X X Extracts X X X X X X X X Extracts X X X X ..... Housekeeping (5 days a week, Monday to Friday) This includes the following- Cleaning the floors of all the rooms Cleaning of all the balconies Dusting of all the furniture and fixture Cleaning of utensils Changing of Linen (Twice a week) Changing of Towels (Twice a week) Cable or DTH connection in living room Gas pipeline or cylinder The broadband connection with the dedicated telephone (charges would be on actual) Electricity (charges would be on actuals) Water bottles 20ltr Jar - 4 bottles a month included (above Rs. 100 per bottle) Ground Water (Charges would be on actual) Pest Control once in 3 months AC service once in 3 months RO service once in 6 months Round the clock security guard (b) The Applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 09.10.2018 which was attended by Sh. Sushank, Advocate and Sh. Mukul Jain C.A. duly authorized by the applicant. The applicant besides reiterating the submissions made in their application had given samples of lease agreements which were taken on record. The question referred for ruling by the applicant is regarding applicability of entry 12 of Notification no. 12/2017 CT(R) dated 28.06.2017 and the corresponding notification of the State Tax on the lease agreements executed between the applicant and the property owners and subsequent occupants of such leased properties. The application was admitted being covered under section 97(2)(b) of the CGST/HGST Act, 2017. The decision on merit was reserved which is being released today. 5. Disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 of the Notification no. 12/2017 CT(R) dated 28.06.2017, hence not exigible to GST. The relevant entry in question is reproduced as under for ready reference: Sr.No Chapter, Section, Heading; Group or service code (Tariff) Description of Services Rate (per cent) Condition 12 Heading 9963 or Heading 9972 Services by way of renting of residential dwelling for use as residence. Nil Nil (d) To better appreciate the concept of the above Tariff heading, the relevant group of services concerned with the question raised by the applicant is Group 9972-Real Estate Services. Precisely, service code 997211 (Rental or leasing services involving own or leased residential property) dealing with the issue in hand need to be understood in it& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 12 of Notification No. 12/2017- Central Tax (Pate) dated 28th June 2017.
Ruling:
The First Lease agreement between the owner and the applicant, at the most can be termed as property management services falling under service code 997221, hence not covered in entry 12 of Notification No. 12/2017- Central Tax (Rate) dated 28th June 2017.
It is the second Lease agreement (Sub-Lease) which is between the applicant and the actual user of the property which is for residential purpose. This agreement, qualifies under service code 997211(Rental or leasing services involving own or leased residential property) and falls under the said entry 12 of the notification in question.
Ordered accordingly.
To be communicated. X X X X Extracts X X X X X X X X Extracts X X X X
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