TaxTMI 
TaxTMI 
2020 (4) TMI 599
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....and backward areas. Through this work experience FPI has found that the weaker sections and the backward communities are the worst victim of any disaster, natural or otherwise. However, they are the first, and the most optimistically energetic group ready to recover. When they receive encouragement and support the poorer among the victims almost turn the losses and deprivation into an opportunity. Therefore, if the relief and reconstruction join with the local initiative, the recovery and growth sprouts. The process of disaster management and the impact of mitigation efforts should be organized around the local recovery efforts. In FPI's work experience - may it be to develop local fodder security system for arid areas or mitigating the impact of drought on widows or help reach credit for reconstruction for the victims of food or help accelerate rehabilitation of displaced households - FPI is trying to tie-up with the philanthropic tradition of Gujarat where the victims are the leaders of relief and reconstruction in the short run, and in the long run, they are the ones to plan disaster preparedness and mitigation measures. The outcome has always been positive, promotive and prog....
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....s as well as local elected and appointed administration. The applicant conducts research and analysis activities related to disaster and relief management. This is done directly or by supporting such efforts led by others. (j) As an educational resource the applicant aims to act as a bridge linking the faculty and the resources of various institutes involved in relief studies, disaster management, relief administration and advocacy with individual groups or local bodies, eager to advance the community development process as part of disaster management. The applicant offers leadership training and internship program. 4. It is respectfully submitted that the aforementioned objectives of the applicant show that it is primarily established for the purposes of prevention, mitigation and management of any disaster and all the other objectives are also ancillary to such purposes. 5. The functions and activities which have also been defined in the Memorandum of Association are also for the purpose of achievement of the objectives set out therein. Contracts entered into by the applicant for the achievement of the objectives as set out in the Memorandum of Association: 6. The applicant....
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....from the receipts then the same is ploughed back into the corpus for the purpose of achievement of the objectives of the applicant. Registered under Section 12AA as well as under Section 80G of the Income Tax Act: 9. The applicant may further point out that it is registered as a charitable trust under Section 12AA of the Income Tax Act, 1961 (herein after referred to as "the Income Tax Act") as well as under Section 80G of the Income Tax Act. In other words while the entire income of the applicant is exempt from income tax, even the donations made to the applicant are admissible deductions for the donors under Section 80G of the Income Tax Act. The Applicant has furnished the copy of the Certificates issued to the applicant under the Income Tax Act. Cumulative reading of the facts of the applicant show that the applicant is not engaged in any business: 10. In the respectful submission of the applicant a cumulative reading of the aforementioned facts of the applicant show that it is not engaged in any business or any commercial or trading activities. The applicant is only a charitable trust engaged in training/research relating to disaster prevention, mitigation and management. ....
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.... 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; " 14. Thus while the term "business" has been elaborately defined, except for a few activities which have been specifically incorporated, the activity should be in the nature of trade, commerce, manufacture, profession, vocation, adventure or similar activity in order to qualify as "business". 15. It is respectfully submitted that since the applicant is not engaged in "business", the transactions of the applicant are not "supply" transactions as defined under the GST Acts. Hence the applicant does not have any "turnover" and therefore it is not required to take registration under the GST Acts. Judgment of Hon. Supreme Court squarely supports the applicant: 16. The applicant is squarely supported in its sub....
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....t intention to carry on "business" in the incidental or ancillary activity is established. In such cases, the onus of proof of an independent intention to carry on "business" connected with or incidental or ancillary sales will rest on the department. Thus, if the main activity of a person is not trade, commerce, etc., ordinarily incidental or ancillary activity may not come within the meaning of "business". 17. It is respectfully submitted that even in the case of the applicant the applicant does not have any intention of carrying out any "business". The applicant is a charitable trust established for activities relating to disaster prevention, mitigation and management. All the contracts which are entered into by the applicant are for the achievement of such objectives. In fact majority of the contracts are with Governments of different States. The applicant is duly registered under Section 12AA as well as under Section 80G of the Income Tax Act, 1961. In such facts and circumstances it is respectfully submitted that applicant is not liable for registration or payment of tax under the GST Acts. Judgments of Hon. High Courts supporting the submission of the applicant 18. The ap....
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.... was an incidental activity to the main activity and since the main activity was not business the incidental activity was also not business. Hon. High Court concluded that the petitioner was not covered within the meaning of the word "dealer" as defined in the Uttarakhand Value Added Tax Act, 2005. (vi) Sri Velur Devsthanam Vaitheeswaran Koil Dharmapuram Adhinam v/s State of Tamil Nadu 53 VST 235 (Mad.) = 2014 (5) TMI 497 - MADRAS HIGH COURT: The Petitioner was constituted for maintenance of the main temple, shrines and minor temples attached thereto and charities and endowments thereof. Ornaments were donated by devotees to the temple which were sold off. It was held that the petitioner was not carrying trade, commerce, etc. The conduct of sale of offerings was incidental to the object which was totally religious. Hence it was not a dealer liable to tax under the Tamil Nadu General Sales Tax Act, 1959. (vii) Sulabh International Social Service Organization v/s State of Tamil Nadu 53 VST 248 (Mad.) = : A charitable social service organization entrusted with the work of construction of Sulabh Sauchalaya was held to be not a dealer. (viii) Mahatma Gandhi Kashi Vidyapeeth v/s St....
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....ies exempt from tax under the GST Acts. 22. Definition of the term "environment" as contained in different dictionaries is as under: (a) Oxford online dictionary: (1) The surroundings or conditions in which a person, animal, or plant lives or operates. (2) The natural world, as a whole or in a particular geographical area, especially as affected by human activity. (b) Merriam Webster online dictionary-: (1) the circumstances, objects, or conditions by which one is surrounded; (2) (a) the complex of physical, chemical, and biotic factors (such as climate, soil, and living things) that act upon an organism or an ecological community and ultimately determine its form and survival (b) the aggregate of social and cultural conditions that influence the life of an individual or community. 23. It is respectfully submitted that the afore stated definitions point out that "environment" is a wide term encompassing the surroundings and living conditions of the people and also includes social conditions. Disaster has grievous consequences on the environment in which people live and therefore activities of disaster prevention, mitigation and management will come within the ambi....
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.... the business of exclusively supplying services which are exempt from tax, the applicant is not required to take registration by virtue of Section 23(1 )(a) of the GST Acts. DISCLAIMER 28. The applicant says that above question posed for advance ruling is neither pending nor decided in any proceedings in the case of the applicant under any of the provisions of the GST Acts. Discussion and findings: 29. We have considered the submissions made by the applicant in their application, and at the time of personal hearing. Jurisdictional Authority has not furnished any comments in the matter. 30. We find that the applicant has raised the following question for the purpose of advance ruling under section 97 of the Central Goods and Services Tax Act, 2017/the Gujarat Goods and Services Tax Act, 2017 (herein after collectively referred to as "the GST Acts"): Whether the applicant is liable for registration under the GST Acts? 31. We find from the objectives of the applicant as described in the Memorandum of Association as well as from the bye-laws of the applicant, which laid down the modes by which the applicant can raise funds for its activities as mentioned in foregoing paras that....