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TMI Blog2023 (4) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... 92300000599ARE, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act, KGST Act. 2. The Applicant being a non-resident Indian, holding an OCI card and residing at California, United States of America (USA), owns an immovable property at Bangalore, India and rented the same to the tenants. 3. In view of the above, the applicant has sought advance ruling in respect of the following questions: a. Whether the Applicant is liable to be registered in Karnataka under KGST/CGST Act 2017? b. Whether applicant is required to pay tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not have any of the places that are included under "place of business", in India; he doesn't have any fixed establishment in India and thus clause (d) is the relevant one to the location of supplier of services is i.e. "usual place of residence" and therefore the location of supplier of service is outside India. 6.3 Further, the concept of "place of supply", defined under Section 12 and 13 of the IGST Act 2017 is to determine the nature of supply and thus is different from the place from where the supply is affected. (Otherwise of which there would not have been the concept of inter-state supply). 6.4 The applicant contends that the services can be construed as import of services as defined under Section 2(11) of the IGST Act 2017, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any, payable has to be paid by the recipient of service and thus he is not liable to be registered in India and is not liable for payment of GST in India. PERSONAL HEARING PROCEEDINGS HELD ON 21.02.2023 7. Sri. Rajesh Kumar T R, Chartered Accountant & Authorised Representative of the applicant appeared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd thus unable to take care of the said commercial property owned by him. It is observed from para 1 of the said GPA that the applicant has nominated / appointed the attorney to induct tenant, to create tenancy and to execute necessary deeds or documents either registering before the Jurisdictional sub-registrar and to receive all profits, rents, lease advance money, advance security deposit amount from the existing tenant and also from the prospective tenant and to take care all necessary action regarding tenancy of the said scheduled property. Further para 2 of the said GPA provides that the attorney is also empowered to approach all the Jurisdictional /statutory authorities such as BDA, BBMP, BESCOM, BWSSB, METRO to remit taxes either we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of a general power of attorney, bind the principal. The power of attorney is frequently used in the event of a principal s illness or disability, or when the principal can't be present to sign necessary legal documents for financial transactions. It is a document that lists the authorization/power given to the third party. It generally includes the following clauses: (i) Material particulars (personal information) of the principal and the agent i.e. the parties, (ii) The various purposes for which the agent is authorised to act on behalf of the agent, and (iii) A list of 2 witnesses who shall affirm the contents of the general power of attorney. 14. In the instant case, vide GPA registered on 22.05.2022, Shri Nagabhushana Naray ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39; in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied. Thus from the said provisons, Smt.Prabhavathi, the GPA holder is the supplier of service of leasing of the building for commercial purposes. 16. Since Smt Prabhavathi is a resident of Bengaluru, Karnataka and a supplier of taxable service, is liable to take registration under Section 22(1) of the CYST Act, 2017 which reads as "22. Persons liable for registration.- (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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