TaxTMI 
TaxTMI 
2019 (10) TMI 797
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....n charges as per section 15(2) of the CGST Act, 2017 and KGST Act, 2017? b) Whether the supply service in the hands of the applicant could be classified as merely a supply of facilitation services between and the commuters? 3. The applicant furnishes some facts relevant to the Stated activity: (a) The applicant is engaged in the business of operation and maintenance of ITPB. It is submitted that, apart from other services viz. operation and maintenance of electrical systems at common areas, building and civil repairs, maintenance of lifts etc., the Applicant also facilitates the service of transportation to the employees of the tenants of the business park (herein after referred to as 'commuters). (b) It is further submitted that, for the provision of transport facilitation service, the Applicant has entered into a contract with Bangalore Metropolitan Transport Corporation (hereinafter referred to as 'BMTC'), BMTC is the sole public bus transport provider for Bengaluru, serving urban, sub-urban and rural areas and it provides people-centred services and commuter responsive service planning and promotion. In order to facilitate the service of t....
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....or Vehicles Act, 1988 (59 of 1988); (b) "stage carriage" has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) (c) "radio taxi" means a taxi including s radio cab, by whatever name called, which is in two-way radio communication with central control office and is enabled for tracking using Global Positioning System (GPS) General Packet Radio Service (GPRS). 5% Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation No. (iv.)] (g) It is submitted that the Applicant charges a separate fee in the form of 'facilitation fee' for arranging this facility for the said commuters. This practice is followed for both Non-AC passes as well as Combo bus passes. (h) The Applicant charges a fee of Rs. 300 along with applicable GST at the rate of 18% per bus pass supplied to the commuters. Enclosed herewith is a sample invoice (refer Annexure 2) to demonstrate the tax on regular and AC buses and facilitation fee. (i) Additionally, the applicant also submits that monthly passes are provided as per the request of the....
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....tual cost of bus pass is merely an act without any quid pro quo. 4.2 The Applicant contends that he is an intermediary with respect to the supply of bus passes for the following reasons: (a) In the instant case, as explained in the Aforesaid paragraphs, the Applicant acts as a pass-through by mediating the transportation service provided by BMTC. The Supplier being BMTC provides transportation service to the commuters, who are the recipients of such service by BMTC. (b) The Applicant believes it is an Intermediary With respect to the Supply of bus pass on the bases of the definition of 'intermediary' as per section 2(13) of the IGST Act, 2017, which is reproduced as follows: "intermediary" means a broker, an agent or any other person, by Whatever name called, who arranges or facilitates the supply of goods or services or both, or Securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account". (c) On a perusal of the above definition, it is crystal clear that the applicant is an intermediary as it arranges the service of transportation by providing the bus pas....
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....rtation service. The responsibility of the Applicant is towards facilitation of the same. The same can be substantiated by the agreement between BMTC and the Applicant. 4.3 The applicant contends that the Agreement between the Applicant and BMTC provides for arranging -transportation service for the following reasons: (a) The Applicant intends to bring to your kind attention that as per the agreement between the Applicant and BMTC, the Applicant has merely agreed to facilitate the transportation service and assist the commuters to obtain the passes. Relevant extract of the agreement is as follows: "the second party is desirous of arranging for transport for the staff employed with it and by the various Corporate Clients of the International Tech Park Bangalore (ITPB) (staff of the tenants of the Park) from different parts of Bangalore City as mentioned in the Schedules, to and from ITPB, located at Whitefield Road, Bangalore 560066. The First party has agreed arrange the transport facility to the staff of tenants of the Park (the said purpose) subject to the terms and conditions" (b) The Applicant Wishes to submit that bus passes are issued by BMTC onl....
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....ts and other ancillary costs to be included in the Value of supply. The extract of the same is provided as follows: "(2) The value of supply shall include - (a) any taxes, duties, cesses, fees and charged levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Service Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the Supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable the goods or Services or both; (c) Incidental expenses, including Commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods of supply of services; (d) Interest or late fee or penalty for delayed payment of arty consideration for any supply; arid (e) Subsidies directly linked to the price excluding subsidies provided by t....
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....nt collects the consideration of the bus passes plus the service charges and provides the same services. 5.4 in the pertinent case, the following points are observed in the agreement between the applicant and BMTC : (a) The applicant is desirous of arranging transport for the staff employed with it and by the various corporate clients of *the International Tech Park, Bangalore (ITPB) from different parts of Bangalore City and from ITPB. The BMTC has agreed to arrange the transport facility to the staff tenants of ITPB. (b) The BMTC has agreed to allot and provide the requisite number of buses for the said purpose at the rate of 1 bus for every 50 monthly bus passes taken by the applicant from BMTC. BMTC would send the bills to the applicant on or before the 10th days of the succeeding Calendar month calculated as per the applicable rate for each category of monthly passes demanded by BMTC. The bill amount Shall be paid on or before the 15^th of the Same month. . . In case the bills are not Settled together with interest within 1 month from the date the bills become due, the BMTC reserves the right to stop the service of the Chartered buses. (c) Monthly....