TaxTMI 
TaxTMI 
2020 (1) TMI 1124
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....to the overseas company. 3. As per the application for advance ruling filed by the applicant, they provide group mediclaim coverage to all of its employees, their spouse and three children, cost of which is borne by the applicant. In addition to this, any employee can opt for mediclaim coverage for their parents also for which the employee has to pay an amount of Rs. 5,000/- for both the parents. The amount of premium recovered from the employee by the applicant is restricted to Rs. 5,000/- for both the parents and anything in excess of Rs. 5,000/- is bear by the applicant. Accordingly, the applicant pays the recovered amount to the insurance company against the increased insurance premium of next year's insurance policy. 4.&nbs....
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....the activity of developing software, nor can it be called an activity done in the course of or in furtherance of development of software as it is not integrally connected to the business in such a way that without this the business will not function and which will take the business activity forward. If mediclaim facility for employees' parents is not provided, there will definitely be some inconvenience to the employees but it would not facilitate the business activity of developing software. Accordingly the applicant has concluded that facilitating the medical insurance for employees' parents, is not an activity by them in the course of or in furtherance of its business of software development. 6. The applicant also paid rel....
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....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 provision under the UPGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act/UPGST Act would be mentioned as being under the 'CGST Act'. 10. We have gone through the submissions made by the applicant and have examined the explanation submitted by them. At the outset, we find that the issue raised in the application is squarely covered under Section 97(2)(e) of the CGST Act, 2017 being a matter related to determination of the liability to pay tax on a....
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....rtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; (c) the activities specified in Schedule I, made or agreed to be made without a consideration; and (d) the activities to be treated as supply of goods or supply of service as referred to in Schedule II. 14. The term "Service" is defined, as per sub-section (102) of Section 2 of the CGST Act, 2017, as : "Service means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charg....
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.... as public authorities;". 16. From the details/documents provided by the party we observe that the applicant is transferring whole amount (Rs. 5,000/- per employee for both the parents), collected from their employee towards parental insurance, to the insurance company, which in turn providing insurance cover to the parents of the employee. We also observe that the applicant, in its applicant has informed that anything in excess of Rs. 5,000/- is borne by the applicant. We further observe that the applicant is in the business of development and export of software to the Overseas Company and not in the business of providing insurance services. 17. We also observe that the Maharashtra Authority for Advance Ruling ('AAR')....