TaxTMI 
TaxTMI 
2006 (11) TMI 7
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....7.31% of paid up equity of the applicant. The holding company was awarded the contract of Civic Centre construction work at Jawahar Lal Nehru Marg, Minto Road, New Delhi by the Municipal Corporation of Delhi (MCD). The holding company has sub-contracted the work of Civic Centre construction to the applicant. In the application against column 6, it is stated that the construction work is in progress. On these facts, the applicant seeks advance ruling of the Authority on the following question: "Whether the Civic Centre Construction Work awarded by the MCD is liable to service tax under section 65(105)(zzq) read with section 65(25b) of the Chapter V of Finance Act 1994". 2. On the scrutiny of the application, the Secretariat of the Auth....
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....company. 4. To appreciate the grounds of rejection, we refer to the definitions of "advance ruling" and " applicant" in clauses (a) and (b) respectively of section 96A of the Service Tax, which read as under: Section96A. Definitions- In this Chapter, unless the Context otherwise requires,- (a) "advance ruling " means the determination, by the Authority, of a question of law or Fact specified &nbs....
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....sp; xx xx In so far as the first ground is concerned, the applicant claims to fall under clause (b)(i)(c). Under that sub- clause a wholly owned subsidiary Indian company of which the holding company is a foreign company may be an applicant in an applicant under section 96C of the Service Tax Act. Clause (e) of section 96A says that "non-resident", "Indian company" and "foreign company" have the meanings respectively assigned to them in clauses (30), (26) and (23A) of section 2 of the income-tax Act,1961. But the definitions of those terms will not solve our problem as we are concerned with the expression "wholly owned subsidiary Indian company". It is true that the ....
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....rated in India would he a public company within the meaning of the Companies Act. Therefore, it follows that at least one share in the wholly owned subsidiary Indian company should be held by a person other than the foreign holding company assuming (in the absence of particulars) that it fulfills the criteria of a public company had it been incorporated in India and the subsidiary company is a private company. Clauses (iii) and (iv) of sub-section(i) of Section 3 of the Companies Act, respectively require that a "public company" must have a minimum paid up capital of five lakhs rupees and at least seven share holders and that a "private company" which must have a minimum share capital of one lakh rupees and at least two share holders. in th....