TMI BlogActivities or Transaction Excluded from Supply - Section 7 Schedule IIIX X X X Extracts X X X X X X X X Extracts X X X X ..... Act in the common parlance, these term may be defined as under: - (1) Employer a person who has engaged or hired the services of another. he is entitled to rights and bound to perform duties. (2) Employee is a person who is hired for a wages, salary, fee, or payment to perform work for an employer. Clarification in respect of levy of GST on Director s remuneration - [ Circular no. 140/2020-GST Dated 10th June 2020 ] Where in the salaries paid to directors are subject to tax deducted at Source under section 192 under Income Tax Act 1961 not a treated a supply , In case where the remuneration is in the nature of professional fee and not a salary the same is liable for tax deduction at sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntract of employment are treatable as amount in relation to services provided by the employee to the employer in the course of employment. Services provided by casual worker to employer who gives wages on daily basis to the worker then these are services provided by the worker in the course of employment. Casual worker is employed by a contractor like a building contractor or a security services agency, who deploys them for execution of a contract of contract or for provision of security services to a client. then services provided by the worker to the contractor are services in the course of employment and hence not taxable. 2. Services by any Court or Tribunal established under any Law for the time bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of the provisions of the constitution in that capacity; or (c). The duties performed by any person as a Chairperson or a member or a Director in any Body established by the Central Government or a State Government or Local Authority and who is not deemed as an employee before the commencement of this clause. [ Para 3 ] That duties performed by the Members of parliament, Member of State Legislature, Members of Panchayats, , Members of Municipalities and Members of other local authorities are exempt only if these are duties performed in the capacity of constitution, not in any other capacity. 4. Services of funeral, burial, crematorium, or mortuary including transportation of the deceased. [ Para 4 ] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y service provided for development of land, like levelling, laying of drainage lines (as may be received by developers) shall attract GST at applicable rate for such services. Issue related to taxability of tenancy rights under GST [ Circular No. 44/18/2018-CGST Dated 2nd May, 2018 4. The transfer of tenancy rights cannot be treated as sale of land or building declared as neither a supply of goods nor of services in para 5 of Schedule III to CGST Act, 2017 . Case Law IN RE: M/S. KEDARAM TRADE CENTRE ( 2023 (4) TMI 300 - AUTHORITY FOR ADVANCE RULING, GUJARAT ) Held that The lease of plot for 90 years by the applicant is not sale of land but is a lease and therefore, does not fall within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eemed as supply of goods under GST Act. 8. (a) Supply of Warehoused goods to any person before clearance for home consumption; ( Circular No. 46/2017-Customs 24 Nov 2017 ) [ Para 8 ] In accordance with provisions of sectioon3 of customs Tariff Act, 1975, the goods are subjected to custom duty after filling entry at the custom stations. Explantion 2 to Schedule III defines warehoused goods as per meaning as assigned to in the customs Act, 1962. Circular No. 46/2017-Customs D ated 24 November 2017 has clarified applicability of IGST on warehoused goods transferred/sold while being deposited in a warehoused. Circular No. 03/01/2018-IGST Dated 25 May 2018 had further ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice under the definition of Goods (clause 52 ) or Services (Clause 102) of Section 2 of CGST, Act 2017 Further, securities include shares as per definition of securities under clause (h) of section 2 of Securities Contracts (Regulation) Act, 1956 . Analysis :- This implies that the securities held by the holding company in the subsidiary company are neither goods nor services. Further, purchase or sale of shares or securities, in itself is neither a supply of goods nor a supply of services. For a transaction/activity to be treated as supply of services, there must be a supply as defined under section 7 of CGST Act . It cannot be said that a service is being provided by the holding company to the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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