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TMI BlogSHIP REPAIR SERVICE THROUGH SUB CONTRACTORX X X X Extracts X X X X X X X X Extracts X X X X ..... SHIP REPAIR SERVICE THROUGH SUB CONTRACTOR X X X X Extracts X X X X X X X X Extracts X X X X ..... nd we raise invoice to shipping company. Read with Notification No. 02/2021- Central Tax (Rate) dated 2nd June , 2021 -- 1) Can the subcontractor raise invoice @ 5%? 2) Can we raise invoice @ 5% on shipping company? Kindly advise with relevant case laws ,circulars,advance rulings etc., if any. Reply By KASTURI SETHI: The Reply: Answer is YES. You must fulfill the condition laid down in notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication. What has created doubt in your mind ? When law is clear, you do not need to take shelter of any circular. Reply By SSOE SSOE: The Reply: Sir My doubt is, we are not directly providing the ship repair and maintenance service. We are indirectly providing the same through the sub contractor. Is there any case law which says that the nature of the service won't change even if servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is provided through sub contractor? Since 5% is a beneficial Gst rate given by government to boost ship repair industry , whether this needs to interpreted narrowly or widely? Sir, required detailed analysis. Reply By SOWMYA CA: The Reply: Sir, As I understand your query, you are rendering job work services to a shipping company and you have sub-contracted the work to another contractor. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the Notification No. 2/2021 dated 2-June-2021, the rate of GST to be charged is @5%. The service rendered by the sub-contractor to the main contractor being maintenance, repair and overhaul services in respect to ships, is identical to the service rendered by the main contractor to the shipping company, the rate to be charged by both of them would be 5% only. Also as per Sr No. 12 in the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss release of the 25th meeting of GST council held at New Delhi on 18/01/2018, proposed that the rate of GST applicable to the main contractor should be levied by sub-contractor. However the said sl. No. 12 is for works contract services. In my view 5% needs to be charged by both the main contractor and sub-contractor. Reply By KASTURI SETHI: The Reply: A sub-contractor works for and on behalf o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the main-contractor. It cannot be denied. Presumably, you have executed contract/agreement with your sub-contractor. De facto you are providing repair & maintenance service to the shipping company. It is not job-work at all. There is a separate Heading for repair and maintenance service and specifically concessional rate of tax @ 5% is available to the service supplier subject to non-availment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ITC. As per the definition of Works Contract Service under GST, WCS is not in picture here. Only repair & maintenance service to ships, vessels etc. is in picture for which Govt. has provided concessional rate of 5%. Reply By KASTURI SETHI: The Reply: For more information go through the following decision of AAR Kerala:- [Pl. note that notification in question is dated 2.6.21 whereas the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of AAR was paased on 25.5.21] 2021 (7) TMI 533 - AUTHORITY FOR ADVANCE RULING, KERALA - IN RE : SOUTH INDIAN FEDERATION OF FISHERMEN SOCIETIES Reply By KASTURI SETHI: The Reply: As per the following decision of AAR (Maharashtra), the activity of repair is not job-wok. Re : S.B.Shellers (P) Ltd. reported as 2021 (10) TMI 1160 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA Reply By SSOE SSOE: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply: Thank you for your valuable inputs. Sir, as per the notification, 5% gst rate is with input tax credit. Reply By SSOE SSOE: The Reply: Dear Sir Input tax credit is allowed under serial no.25 ,Heading 9987 for items -- (ia),(ib) and (ii). Input tax credit is not allowed only under item (i). Kindly confirm. Reply By KASTURI SETHI: The Reply: I stick to my reply at serial no.4 ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove Punctuation marks _ " have been used in the Notification No.2/21-CT(R) dated 02.6.21.
A dash is used to separate words or a group of words whereas a hyphen mark is used to link/join words or a group of words. The purpose of both these sign is exactly the opposite.
Inverted commas are used to enclose the exact words of a speaker or a quotation. These are used for other purposes also. X X X X Extracts X X X X X X X X Extracts X X X X ..... Discussion Forum - Knowledge Sharing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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