AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 552
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....evelopment which is exported to the overseas company. 3. As per the application for advance ruling filed by the applicant, the free parking slot made available by the building authorities to the applicant are not sufficient, so the applicant arranged to obtain more parking slots from building authority on payment of additional lease charge and this amount is equally recovered from the employees using the parking slots. Around Rs. 1,500/- is recovered from employee for car parking and Rs. 500/- towards two-wheeler parking. Any additional amount i.e. penalty/ additional charges imposed by the building authorities are paid by the employee directly to the building authority. 4. As regard to the parking charges recovered from t....
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....ness in such a way that without this the business will not function and which will take the business activity forward. If parking slots are 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 parking slot, is not an activity by them in the course of or in furtherance of its business of software development. 6. The applicant also paid reliance on various case laws including the Advance Ruling pronounced by the Maharashtra Authority for Advance Ruling in the case of M/s. Posco India Pune Processing Center Private Limited [2019 (21) G.S.T.L. 351 (A.A.R. - GST)] to vindicate thei....
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....8-9-2019, wherein it has been reported that the car parking facility is being provided during the course of business and the same will certainly be beneficial to their employees for furtherance of business of the applicant. Accordingly, the jurisdictional officer has opined that the said activity is taxable under GST and liable for Tax. Discussion and finding : 9. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST 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 provision under the UPGST Act. Further to the earlier, henceforth for the ....
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.... the employees towards car parking charges is a "Supply of service" by the applicant to its employees. 13. We observe that Section 7(1) of the CGST Act, 2017 defines the term "Supply" as : "7. (1) For the purpose of this Act, the expression "supply" includes (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; and (c) the activities specified in Schedule I, made or agreed to be made without a consideration; ....
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....tion or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;". 16. We observe that as per the letter dated 28th August, 2018, addressed to the applicant issued by the M/s. Shantinik....