TMI Blog2021 (7) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... of service? HELD THAT:- On a plain reading of the provisions of Section 51 of the CGST Act, it is evident that Section 51 of the CGST Act applies to prescribed and notified categories of persons receiving supplies of goods and / or services exceeding specified value and making payment to the supplier for the same and not to any supplier of goods and / or services. Admittedly, the applicant has preferred this application as a supplier of goods / services - the issues regarding applicability of Section 51 of the CGST Act are not in respect of any matter specified in Section 97 (2) of the CGST Act in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Hence this authority has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iers of spare parts of agricultural machinery to Kerala Agro Machinery Corporation Ltd (KAMCO). Does KAMCO come under bodies eligible to deduct TDS as per Section 51 of the CGST Act? If yes, since when can the TDS be deducted? 2. Whether there is any arrangement we can avail through which we may be exempted from the TDS deduction if we submit in prior the particulars of our refundable excess difference between our input tax and output tax? 3. Can any mechanism be devised by which all business like ours can file an application or formal request and get the excess tax refund payable to them be transferred to the TDS account directly instead of paying the TDS out of their pocket first and then later getting refund? 4. If at all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the burden of supplier taxpayer by having the awarder take up the duty of handing over a portion of the supplier's tax payable, to the Government. In the case of businesses where due to the very nature of business input tax is most certainly higher than the output tax, deduction of TDS by the awarder do not serve any purpose as at the time of supply, the input tax paid by the supplier is with the department itself. The logical, hassle-free and practically efficient method of implementation of Section 51 would be by making arrangement to first deduct the TDS from supplier's excess input tax that is available with the department, and only if that amount does not suffice, the supplier may be asked to pay up TDS at the time of supply. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods or services or both. In respect of suppliers who are engaged in the taxable supply of goods of inverted tax structure there are separate provisions in the CGST Act. The process of manufacturing incurs considerable amounts towards direct expenses for manufacturing and resultant excess input credit will not be such a huge amount as pointed out by the applicant. In order to protect such dealers there is specific and separate provisions in both the Act and Rules for refunds at specific intervals. The questions raised do not fall within the scope of Section 97 (2) of the CGST Act. 6. Personal Hearing: The applicant was granted opportunity for personal hearing on 22.12.2020. Shri. K.S.Hariharan, Advocate represented the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 7.3 Section 103 of the CGST Act that pertains to the applicability of advance ruling reads as follows; 103. Applicability of advance ruling- (1) The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only- (a) on the applicant who had sought it in respect of any matter refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant portion of Section 51 of the CGST Act is extracted below; 51. Tax deduction at source- (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate- (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, to deduct tax at the rate of one per cent from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. On a plain reading of the above extrac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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