Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
AAR held that amounts deposited by shippers into an escrow account operated by the applicant for onward remittance to carriers do not constitute "consideration" under Section 7 of the CGST Act, as the sums never accrue to the applicant and are held purely as deposits belonging to the transacting parties. The applicant's only taxable supply is its facilitation service as an intermediary, for which it receives subscription/commission, on which it is already discharging GST. Consequently, no GST is payable on the freight amounts handled through the escrow mechanism, which are outside the scope of supply in the applicant's hands.
AAR held that amounts deposited by shippers into an escrow account operated by the applicant for onward remittance to carriers do not constitute "consideration" under Section 7 of the CGST Act, as the sums never accrue to the applicant and are held purely as deposits belonging to the transacting parties. The applicant's only taxable supply is its facilitation service as an intermediary, for which it receives subscription/commission, on which it is already discharging GST. Consequently, no GST is payable on the freight amounts handled through the escrow mechanism, which are outside the scope of supply in the applicant's hands.
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