TaxTMI 
TaxTMI 
2019 (10) TMI 1093
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....nthly stipend amount determined by the client and Trust. The Trust is expected to collect stipend amount from the client and transfer the entire amount to the trainee - Does this stipend reimbursement attracts GST or not? b) The Trust is expected to keep training the trainee for acquainting the skills and enhancement of employability. The Trust will charge a predetermined training charges - Does this attract GST or not? c) The Trust also obtains Group Health Insurance Policy and Workman Compensation Policy for the trainee's deployed at client place. Trust recovers this amount on monthly basis, the rate which is determined based on the premium amount. - Does this attract GST or not? d) The Trust is also obliged to recover the expenditure, then against on boarding the trainee - Does this attract GST or not? e) If client finds our trainee suitable for absorption of the roles of the Company, trust would like to charge certain amount on-Rolls conversion charges - Does this attracts GST or not? 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant states that they are a registered Trust under section 12A of the Income Tax Act and also an appro....
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....tude building training provided by the applicant to the trainees. Sometimes the applicant also charges the companies for mobilisation of trainees which is not mandatory and in actual they are expenses that are reimbursed and are not linked to the exact amount of expenses and is called "Sourcing fees" and the applicant wants to know whether GST is payable on all the amounts collected by them. 5. FINDINGS & DISCUSSION: We have considered the submissions made by the applicant in their application for advance ruling as well as the additional submissions made by Sri. Sanjay kalligudi, CA, and Sri Arun Kumar Patil, Managing Trustee, during the personal hearing. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts. At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 5.1 The activity of the applicant is examined and found that the applicant is an registered trust under ....
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....in the actual premium amount paid. The Group Health Insurance Policy shall also be taken for all trainees and cost of the policy be reimbursed in the actual premium amount paid. (e) Training Fees- In addition to the stipend, the company shall pay a training fee per trainee per month for training and administrative tasks for deployment of trainees to the Company for the training. (f) For the candidates sourced by the applicant there will not be any charges for the Sourcing Fee. Replacement of trainee shall be provided, if the trainee selected leaves the training session. (g) On Rolls, absorption fees will not be charged for the trainees deployed by the applicant. 5.5 The second sample agreement is similar the first sample agreement but differs to the extent that there will be no coverage of Group Insurance for the trainees. 5.6 The third sample agreement is similar to the first sample agreement but differs from it in the following respects:- (a) There will be a sourcing fee as one time charge of Rs. 2,750-00 per candidate (b) For the trainees deployed by the applicant, there will be a charge of 6.33% of annual CTC if a trainee is selected by the company and it is one tim....
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...., orphaned or homeless children (B) physically or mentally abused and traumatized persons; (C) prisoners; or (D) persons over the age of 65 years residing in a rural area; (iv) Preservation of environment including watershed, forests and wildlife" In view of the fact that the activities of the applicant are not related to any activity listed under "charitable activities", the activities of the applicant cannot be covered under entry no.1 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. 6.2 The applicant is a facilitator under NEEM and this scheme is envisaged by the Government of India in collaboration with AICTE. But he has not given evidences on the issue whether he is a training partner approved by the National Skill Development Corporation or Sector Skill Council or is a training provider under Deen Dayal Upadhyaya Grameen Kaushalya Yojana. Hence he is not covered by any exemption entries in Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017. 6.3 Regarding the issue of taxation of stipend, the company which is providing on the job training to the trainees is required to pay the stipend to the trainees and the applicant is only acting as an....