TMI Blog2022 (4) TMI 1398X X X X Extracts X X X X X X X X Extracts X X X X ..... the 'Other Terms and Conditions'), it appears that the 'client' (not known whether it applies to IEIPL) is required to reimburse the actual cost of uniform, safety shoes, etc. provided to NEEM Trainees. Both the Agreements attached by the applicant as 'Specimen Copies in respect of the subject application do not provide a clear picture of the actual facts in respect of the present matter and therefore, the questions raised cannot be answered, due to incomplete and inconclusive documentation submitted by the applicant in respect of the subject application. - GST-ARA-122/2019-20/B-54 - - - Dated:- 27-4-2022 - SHRI. RAJIV MAGOO, AND SHRI. T. R. RAMNANI, MEMBER NO. GST-ARA-122/2019-20/B-54 Mumbai, dt. 27.04.2022 PROCEEDINGS (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Service Tax Act, 2017) The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act respectively] by M/s. CLR Skills Training Foundation, the applicant, seeking an adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 8 of the Companies Act, 2013 and in the business of training for more than five years either itself or through its parent company can apply for registration as a NEEM Facilitator under AICTE (NEEM) Regulations. 2.5 The NEEM Facilitator engages with candidates registered under AICTE (NEEM) Regulations as Trainees ( NEEM Trainees ) for seeking training under NEEM, formulate their Training Program make suitable arrangements for facilitating their training in companies/industries registered as Trainer ( NEEM Trainer ) with the said NEEM facilitator. Upon successful completion of the training period, NEEM facilitator shall further issue a training skill assessment certificate to the NEEM Trainee. Applicant is a NEEM Facilitator recognized by AICTE vide Letter bearing F. No. 1-31739471 /1/NEEM/CLRSTF/2016 dated 15.03.2018. 2.6 Before initiation of training under NEEM, a NEEM Trainee has to first enroll himself with the Applicant by signing a contract letter in the format prescribed in Annexure-II to AICTE (NEEM) Regulations. The contract letter is neither an offer nor a guarantee of employment. 2.7 The Applicant has partnered with various companies/ industries who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant the premium paid by the Applicant for the Workmen Compensation Policy and/or Group Health Insurance Policy taken to ensure wealth, safety and health of NEEM Trainees. The beneficiary of the policy taken by the Applicant are NEEM Trainees. This is done to meet the requirement of AICTE (NEEM) Regulations. 2.11 In terms of Rule 33 of the CGST Rules, the reimbursement received by a supplier of the expenditure or cost incurred by him as a pure agent of the recipient of supply shall be excluded from the value of supply. In the instant case, the Applicant satisfies all the criteria prescribed under Rule 33 of the CGST Rules to qualify as pure agent . 2.12 Since, the Applicant fulfils all the criteria laid down for a pure agent it is not liable to include the Stipend amount and other expenses incurred by it in accordance with AICTE (NEEM) Regulations, in the value of supply made to Trainee. Further, the Applicant does not dispute its liability to pay GST on administrative fee and sourcing fee. 2.13 The contention of the Applicant is fully supported by the Advance Ruling of the Hon'ble Authority for Advance Ruling under GST, Karnataka, in the case of Cadmaxx Soluti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L-12-AAR-GST] (ii) DRS Marine Service Pvt. Ltd. [2018-TIOL-304-AAR-GST] 03. CONTENTION -AS PER THE CONCERNED OFFICER: The jurisdictional/concerned officer has not made any submissions in the matter. 04. HEARING 4.1 Preliminary e-hearing in the matter was held on 08.06.2021. The applicant was represented by Authorized Representatives Shri. Arun Jain, Advocate, Shri. Mangesh Shiledar, Finance Controller and Shri. Rohit Bhandarkar. Jurisdictional officer was absent. The Authorized Representatives made oral submission with respect to admission of their application. 4.2 The application was admitted and called for final e-hearing on 01.02.2022. The Authorized representative of the applicant, Shri. Sanjeev Nair, Advocate, Shri. Arun Jain, Advocate Shri. Mangesh Shiledar, Finance Controller were present. The Jurisdictional officer Shri. Pradip Ranpise, Deputy Commissioner PUN-VAT-E-607, LTU-I was also present. Applicant informed that it incurs other expenses. Applicant was asked to produce details of other expenses with sample vouchers and what tax treatment is being adopted at present and also to explain tax treatment adopted by applicant regarding the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause 4 of the Agreement mentioned above, the said Agreement has expired on 29.02.2020 and therefore not valid after the said date and even if the contents of the said Agreement are taken into account, notwithstanding the invalidity of the same due to absence of signatures of the relevant parties to it, it would appear that the supply under the said Agreement has been completed even prior to the date of the subject application which has been made on 11.03.2020 and in view of the provisions of Section 95 of the CGST Act, 2017 the application pertaining to this Agreement would not be maintainable since the questions raised by the applicant would not be in respect to a supply being undertaken or proposed to be undertaken by the applicant at the time of filing the subject application. Therefore, we do not take into consideration the specimen copy, of the Training Collaboration Agreement dated 07.03.2019 entered between the Applicant and LGEIPL. 5.3.2 Training Services Agreement dated 12.02.2019 between the Applicant and Interplex Electronics India Pvt. Ltd. 5.3.2.1 We observe that the said Agreement submitted by the applicant is signed by both, the applicant as well as Interpl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove we find that, both the Agreements attached by the applicant as 'Specimen Copies in respect of the subject application do not provide a clear picture of the actual facts in respect of the present matter before us and we therefore, cannot answer the questions raised, due to incomplete and inconclusive documentation submitted by the applicant in respect of the subject application. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) For reasons as discussed in the body of the order, the questions are answered thus - Question - Whether the reimbursement amount received by the Applicant from Trainer towards Stipend and other expenses incurred by the Applicant in accordance with AICTE (NEEM) Regulations to ensure wealth, safety and health of NEEM Trainees is in the capacity of pure agent and hence not includible in the value of taxable supply made by the Applicant to Trainer for the purpose of payment of Goods and Service Tax ( GST )? Answer: - Not answered in view of discussions made ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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