9911796707
TMI Blog2022 (9) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... ding works contract service or other composite supplies involving supply of any goods) provided to Government, a 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 to any function entrusted to a Municipality under Article 243W of the Constitution is exempted services from the levy of GST. 5. The applicant submits that Article 243W of constitutions stipulate about Powers, authority and responsibilities of Municipalities, etc. subject to the provisions of this Constitution, the Legislature of a State may, by law, endow- (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to- (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding works contract service or other composite supplies involving supply of any goods) provided to Government, a 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 to any function entrusted to a Municipality under Article 243W of the Constitution is exempted services." 3. What kind of documentary evidences or declarations should be collected other than the work order and tender documents from the service recipient, Ahmedabad Municipal Corporation to ensure that the cars are exclusively used for the public health purpose as stated in Sr. No.6 of Twelfth Schedule of Article 243W of the constitution. 4. Whether service provider Varun Travels is entitled to claim Input Tax Credit on receipt of the direct services from the same line of business for rendering the Car Hire services to Ahmedabad Municipal Corporation as per work order No.445/1 dated 01-11-21. 5. Whether Direct input services of the same line of business received by the service provider to render the above services as stated in work order No.445/1 dated 01-11-21 issued by Ahmedabad Municipal Corporation is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nging life and promoting health through the organized efforts and informed choices of society, organizations, public and private, communities and individuals". Analyzing the determinants of health of a population and the threats it faces is the basis for public health. The public can be as small as handful of people or as large as a village or an entire city; in the case of pandemic it may encompass several continents. The concept of health takes into account physical , psychological and social well being." As per contract between applicant and Ahmedabad Municipal Corporation is for Covid-19 third wave, for emergency and for other important matter but which is emergency and other important matter is not specified in the contract. Besides as per Twelfth Schedule of the Article 243 W of the constitution includes "Public Health, sanitation, conservancy and solid waste management hence it does not fall under Sr. No. 6 (Public Health) of Twelfth Schedule of the article 243W of the constitution. Comments on Question No. 2 B. As comments given in point (1) services provided by the applicant does not fall under Sr. No. 6 (Public Health) of Twelfth Schedule of the 243W of the constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d requirements of AMC are set out in Appendix 1. Interested and qualified parties, based on qualification criteria set out in Appendix 2, are requested to submit information about bidder and a financial Quotation / price bid in a manner prescribed in Appendix 3 & 4. (On Line) Terms of the work of Tender (Page No. 15) {As per free English translation}: 21. Agencies shall provide one attendant for Ambulance Van and Dead body van 22. To use Motor Vehicle at the time of emergency work it shall have Fire Extinguisher as per law 24. It is informed by AMC that emergency hooter on the vehicle shall be provided by Agency their own expenses. 25. These contract rate of motor vehicles are for requirement of corona period and other fortuitous emergency requirement. These contract rate are not for regular requirement of motor vehicle. Appendix -1 Tender Name :- Providing Different type / Category vehicles on rental rate contract base emergency work as per tender terms - conditions and requirements of AMC. Part A : Tempo Traveller Part B: AC Innova/ Maruti Ertiga Part C : AC Car (Seating Capacity 1+5) Part D : Dead Body Vehicle Part E : Ambulance Van with Oxygen, Stretcher a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-CT (Rate) dated 18-11-2021 and in entry No. 3 following was omitted : In the said notification, in the TABLE, - (i) against serial number 3, in column (3), in the heading "Description of Services", the words "or a Governmental authority or a Government Entity" shall be omitted; Now, from 18-11-21 Entry No. 3 of Notification No. 12/2017-CT (R) dated 28-6-17 is as follows: 3 Chapter 99 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 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 a Municipality under article 243W of the Constitution. Nil Nil 15.3 We hold that for the applicant service to fall under entry at 3 of said NT, the following criteria is to be satisfied: a. Supply shall be Pure Service excluding works contract service or Composite supply of any goods. b. Service Recipient shall be Central/State Government or the Union Territory or a local authority. c. Supply shall be in relation to any function ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; There are 18 items in the Twelfth Schedule of the Constitution which are as below : (1) Urban planning including town planning. (2) Regulation of land-use and construction of buildings. (3) Planning for economic and social development. (4) Roads and bridges. (5) Water supply for domestic, industrial and commercial purposes. (6) Public health, sanitation conservancy and solid waste management. (7) Fire services. (8) Urban forestry, protection of the environment and promotion of ecological aspects. (9) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. (10) Slum improvement and upgradation. (11) Urban poverty alleviation. (12) Provision of urban amenities and facilities such as parks, gardens, playgrounds. (13) Promotion of cultural, educational and aesthetic aspects. (14) Burials and burial grounds; cremations, cremation grounds and electric crematoriums. (15) Cattle pounds; prevention of cruelty to animals. (16) Vital statistics including registration of births and de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 51 of CGST Act by Ahmedabad Municipal Corporation was obtained and it is observed that Ahmedabad Municipal Corporation has deducted TDS on the payment made to the supplier of service i.e. to applicant considering the service Taxable under GST. Therefore, we hold that the applicant supply do not cover under the work listed in the Twelfth Schedule in relation to functions entrusted to a municipality under Article 243W of the Constitution of India and is not eligible to the exemption under entry No. 3 of Notification No. 12/2017-CT (Rate) 18. The applicant in their application has not submitted any details with regard to question No. 3, 4 and 5. We take up question No. 3, 4 and 5 one by one. 18.1 We find that question No. 3 does not cover under the questions (a) to (g) of Section 97 (2) of CGST Act on which this Authority can pronounce the Ruling. Thus, to give Ruling on question No. 3 is out of the jurisdiction of this Authority and is not maintainable. 18.2 We take up the question 4 for discussion. We find that the applicant is receiving services from the Registered Taxable person of same line of the business for rendering the car hiring service to the Ahmedabad Municipal Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms of the above provision ITC shall be available on the input services used for making an outward taxable supply of the same line of business. Thus the applicant is eligible to avail the Input Tax Credit on receipt of the service from the same line of business entity subject to the condition prescribed under Notification No. 11/2017-CT (Rate). Relevant Entry No. 10 of Notification No. 11/2017-CT (Rate) dated 28-6-17 is reproduced as under : 10 Heading 9966 (Rental services of transport vehicles) (i) Renting of motorcab where the cost of fuel is included in the consideration charged from the service recipient. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] 18.4 Notification No. 11/2017-CT (Rate) dated 28-6-17 amended vide Notification No. 31/2017-CT (Rate) dated 13-10-2017 is reproduced as under : against serial number 10, for item (i), in columns (3), (4) and (5) and the entries relating thereto, the following shall be substituted, namely : - (3) (4) (5) "(i) Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
