TMI Blog2020 (3) TMI 1322X X X X Extracts X X X X X X X X Extracts X X X X ..... y? - HELD THAT:- The Authority of Advance Ruling, Maharashtra, in the case of M/s. DRS Marine Services Pvt. Ltd. [ 2018 (12) TMI 893 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA ], has observed that, Applicant will be acting as a pure agent of RMS in as much as the entire amount received by them as Crews' Salary will be disbursed to the Crew and no amounts from the said receipt will be used by the Applicant for his own interest - In the instant case also, it is observed that the appellant has contended that they are transferring the entire amount collected, from their employees towards parking charges, to the Building Authorities. Accordingly, the value of the services in the present case will be NIL, as the appellant is providing the same in the capacity of a Pure Agent, subject to the fulfillment of the conditions prescribed for Pure Agent . Input tax credit against supply of car parking services to employees - HELD THAT:- Though the activity undertaken by the appellant is a supply of service, in terms of Section 7(1) of the CGST Act 2017, however the value of the service would be nil, as the appellant is acting in the capacity of Pure agent for their employ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parking space for four-wheeler parking or for two-wheeler parking. The appellant does not claim input tax credit of the lease charges paid to the Building Authority. These lease charges are paid in advance on monthly basis along with Goods and Services Tax leviable thereon. 4). Accordingly, the Appellant has submitted application for Advance Ruling dated 08.07.2019 and sought Advance Ruling on the following issues : - i. Whether amount recovered from the employees towards car parking charges payable to Shanti niketan 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 towards car parking charges would be admissible as input tax credit against supply of car parking services to employees ? 5). The Authority for Advance Ruling, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion services (excluding actual parking charges). In the present case, open market value of parking facilitation services provided by an employer to an employee may not be available. However, it is a common business activity for an estate agent, who facilitates the transaction of renting of a property to charge 15 days' rent as facilitation charges for an apartment rented for a period of 12 months or more. Further, facilitation charges are collected one-time only and no service fee is collected thereafter. In case the Authority feels that a value should be attributed to the supply of services, the value of such supply should be determined on a similar basis. Therefore, for a particular parking space, services may be valued at 15 days' lease charges of the first month. As per the appellant, no GST should be applicable on lease charges collected by the appellant and paid to the Building Authority on month to month basis. 7.6) The appellant further submitted that in case the recovery of parking charges is deemed as taxable supply and GST is to be charged by the appellant on the same then it follows that the activity is in the course of or furtherance of business. Accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Schedule I, made or agreed to be made without a consideration; and the activities to be treated as supply of goods or supply of services as referred to in Schedule II. 12). Further, as per Schedule II i.e. Activities to be treated as Supply of Goods or Supply of Services , of the CGST Act, 2017:- . 2. Land and Building a. any lease, tenancy, easement, licence to occupy land is a supply of services; b . As regard to the word easement we observe that in common parlance the word easement is defined as a right to cross or otherwise use someone else's land for a specified purpose . Here we observe that the appellant is providing right to its employee's to use parking facility on the parking space provided by the building authority and for this work they are collecting certain amount from their employee. Accordingly we are of the view that the activity in question, provided by the appellant, is squarely falls under the Schedule II i.e. Activities to be treated as Supply of Goods or supply of Service of the CGST Act, 2017. 13). Now coming to the second question of the appellant i.e. whether the service provided by the appellant would be i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered from the employees for parking charges in the employee manual, though the same is an approximate amount and the said amount is not clubbed with other charges, if any, recovered from the employees. Now coming to the third condition i.e. the supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account , the appellant has contended that they, on their own account, provides facilitation assistance to the employees and in addition to this they also procures services of parking from the Building Authority and provides it to employees in capacity of a pure agent. 15). As regard to the explanation regarding pure Agent the appellant has submitted that: a. Any employee who wants the car parking facility formally requests the appellant to facilitate the same with the Building Authority. The employee also provides email/verbal confirmation for availing the facility and also agrees to pay the charges for the parking space. b. The parking spaces are availed for the sole usage of the employees. This is duly informed by the appellant to the employees as well as to the Buil ..... 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