TMI Blog2021 (12) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... ity 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 are exempt from tax - the Authority for Advance Ruling has observed that SUDA is not covered in the definition of Central Government, State Government, Local Authority, Government Authority or Government Entity. As per the Registration Certificate issued to SUDA and as per the TDS Credit Received Summary provided by the Appellant, SUDA is deducting GST-TDS amount from each and every payment made by them, in term of section 51 of the Act - the Consultancy services rendered by the Appellant under the contract with SUDA, and for PMAY are in relation to functions entrusted to Municipalities / Panchayats under Article 243W / 243G of the Constitution of India. Whether such services provided by the Appellant would qualify as Pure services? - HELD THAT:- The services mentioned in the contract would qualify as Pure Service (excluding works contract service or other composite supplies involving supply of any goods) as provided in serial number 3 of Notification No. 12/2017-Central Tax (Rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Construction in 18 Clusters vide work order no. 1190/01/29/HFA/ 2018-19 dated 16/01/2019. 3). Accordingly, the Appellant has submitted an application dated 06.11.2020, before the Authority for Advance Ruling Uttar Pradesh and sought Advance Ruling as follows : - (i) Whether the Project Development Service (i.e. Detailed Project Report Service) and Project Management Consultancy services ('PMCS') provided by the applicant to the recipient under the Contract from State Urban Development Authority (herein after referred as SUDA ) and the Project Management Consultancy services ('PMC') under the Contract for PMAY would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India? (ii) If answer to first question is in affirmative then, whether such services provided by the applicant would qualify as Pure services (excluding works contract service or composite supplies involving supply of any goods) as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017, as amended (S. No. 3A) by Notification No. 2/2018- Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red in personal hearing on behalf of the Appellant. During the course of personal hearing, he reiterated the submissions already made vide appeal application dated 06.04.2021. He has nothing more to add. DISCUSSION AND FINDING 8) We have gone through the submissions made by the Appellant and examined the detailed explanation submitted by them. We observe that the question before us to decide is whether the services provided by the Appellant to the SUDA would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G and 243W of the Constitution of India and whether these services would qualify as Pure Services or not. 9) Now coming to the first question we observe that as per Sl. No. 3 of Notification No. 12 / 2017-CT (Rate) dated 28.06.2017 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 Panchayat under article 243G of the Constitution or in relation to any function entrusted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of existing slum dwellers using their land as a resource through private, participation, and affordable Housing in Partnership. As per the detail available on website SUDA is the state level nodal agency for PMAY(U) in the state of Uttar Pradesh. 13). Now coming to the functions entrusted to Panchayats/Municipalities, the matters listed in the 11th and 12th schedule to the constitution (details 243G and 243W, respectively), are inter alia: (a) Safe water for drinking, (b) Maintenance of community assets, (c) Family welfare, (d) Markets and Fairs, (e) Poverty Alleviation Programmes, (f) Regulation of land use and construction of land buildings, (g) Urban planning including the town planning, (h) Planning for economic and social development, (i) Urban poverty alleviation, (j) Slum improvement and up-gradation etc. Further as per the preface to the PMAY, Housing for All (Urban) Scheme Guidelines:- The Mission seeks to address the affordable housing requirement in urban areas through following programme verticals: Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... izes of plots, project structuring under appropriate development and funding mechanism. Assistance in obtaining appropriate approvals from concerned agencies/ departments. Appropriating all necessary data in reference to Slum Free city Plan in the DPR. The DPR should be complete in all respect with all report drawings, statements and documents necessary for obtaining the grant from the Government of India. B. Scope of Work under Project Management Consultancy (PMC):- PMC will coordinate, execute and monitor the activities leading to the construction of approved DUs (Dwelling units) by Govt. of India. All the activities till the completion of DUs will be taken care of by PMC. PMC shall also administer the works by the beneficiaries and ensure that the agreement between the ULBs and beneficiaries whether related to quality or quantities of work are executed in accordance with its provisions. PMC shall attach Beneficiaries to the project in PMAY-MIS and also upload Annexure 7A 86 7C. PMC shall execute all MIS related work of PMAY (U). PMC will supervise the construction work to ensure adherence to the drawings, prescribed high standards of qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as Pure Service (excluding works contract service or other composite supplies involving supply of any goods) as provided in serial number 3 of Notification No. 12/2017-Central Tax (Rate) dated 28 June, 2017, as amended by Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under Central Goods and Services Tax Act, 2017 ('CGST') and corresponding Notifications No.- KA.N.I.-2-843/X1- 9 (47) / 17-UP. Act-1 - 2017 - Order - (10) 2017 Lucknow, dated June 30, 2017 issued under Uttar Pradesh Goods and Service Tax Act, 2017 ('UPGST Act'), where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and UPGST, respectively. RULING In view of the above discussion, we hold that the Services rendered by the appellant to the State Urban Development Agency, Uttar Pradesh (SUDA), and for PMAY, are in relation to functions entrusted to Municipalities under Article 243W and to Panchayats under Article 243G of the Constitution of India and such services would qualify as Pure Service (excluding works contract s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
