/** * The main template file * * This is the most generic template file in a WordPress theme * and one of the two required files for a theme (the other being style.css). * It is used to display a page when nothing more specific matches a query. * E.g., it puts together the home page when no home.php file exists. * * @link https://developer.wordpress.org/themes/basics/template-hierarchy/ * * @package WordPress * @subpackage Tally * @since 1.0.0 */ ?>
The AAR, Maharashtra in the matter of M/s. Indiana Engineering Works (Bombay) Pvt. Ltd. [Advance Ruling No. GST-ARA-120/2019-20/B-114 dated December 16, 2021] held that, GST payable on electricity charges and water charges as per meter reading and collected from the recipients on actual reimbursement basis. Further, there is no authorization, obtained to act as pure agent and to make payment to third parties, therefore the assessee cannot be considered as a pure agent.
M/s. Indiana Engineering Works (Bombay) P. Ltd. (“the Applicant”) is the absolute owner of “Indiana House” and has entered into a Leave and License Agreements with M/s. Capri Global Capital Ltd (“the Licensee”), the Applicant has licensed its office premises to the Licensee for use and occupation of the leased premises on an agreed license fee payable monthly with Service tax/GST, that includes access to the respective common areas. In addition to the giving of the immovable property on lease, the Applicant is also providing utilities, such as electricity, water and internal maintenance in respect of the licensed premises and the charges are recovered from the Licensee based on the reading shown in the electricity/water meters provided by the Applicant.
The Applicant contended that, reimbursement of water charges, electricity charges, is nothing but repayment of certain expenses incurred by the Applicant on behalf of the Licensee and they do not have character of supply as defined under the Central Goods and Services Tax Act, 2017 (“CGST Act”). Further, the reimbursement of expenses received by them from the Licensee can qualify towards expenses incurred as a 'Pure Agent' and would not be considered in the value of supply for the levy of tax.
The AAR, Maharashtra in Advance Ruling No. GST-ARA-120/2019-20/B-114 dated December 16, 2021 held as under:
(Author can be reached at email@example.com)
DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.
The Goods and Services Tax Network (“GSTN”) vide Advisory dated July 20, 2022 state that E-Commerce Operator (“ECO”) are liable to pay GST on specified supply of services under Section 9(5)
The Hon’ble Supreme Court in Union of India & Anr. v. M/s Mohit Minerals Pvt. Ltd. [Civil Appeal No. 1390 of 2022 dated May 19, 2022] upheld the judgement given by the Hon’ble Gujarat High Court
The Hon’ble Kerala High Court in M/s G & C Infra Innovations v. Union of India and Ors. [WP(C) No. 14096 of 2019 dated March 7, 2022] has directed the Revenue Department to facilitate revising
The CESTAT, New Delhi in M/s. KEC International Limited v. Commissioner of Central Excise and Central Goods & Service Tax (Appeals) [Excise Appeal No. 52907 of 2019 dated May 10, 2022]
We are fast approaching the end of financial year 2021-22. It mandates for some activities to be carried out under GST laws for smooth transition to Financial Year 2022-23. We have listed down