TaxTMI 
TaxTMI 
2020 (5) TMI 221
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....r from Private Limited company c) Interest income on partners fixed capital credited to partner's capital account d) Interest income on partners variable capital credited to partner's capital account e) Interest received on loan given, f) Interest received on advance given g) Interest accumulated along with deposit/ fixed deposit h) Interest income received on deposit/ fixed deposit i) Interest received on Debentures j) Interest accumulated on debentures k) Interest on Post office deposits l) Interest income on National Savings certificate (NSCs) m) Interest income credited on PF account n) Accumulated Interest (along with principal) received on closure of PF account. o) Interest income on PPF p) Interest income on National Pension Scheme (NPS) q) Receipt of maturity proceeds of life insurance policies r) Dividend on shares s) Rent on Commercial Property t) Residential Rent u) Capital gain /loss on sale of shares 3. In view of the above, the applicant has sought advance ruling in respect of the following questi....
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....N 86 FINDINGS: 7.1 We have considered the submissions made by the Applicant in his application for advance ruling as well as the submissions made by Sri. Abhimanyu Kumar, CA 86 Authorized Representative of the applicant during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 7.2 At the outset, we would like to make it clear that the provisions of both the CGST Act, 2017 and the KGST Act, 2017 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 corresponding similar provisions under the KGST Act. 7.3 The applicant, an unregistered person, is in receipt of various types of income and intend to know whether the income so received in each type is includable in the Aggregate Turnover, for the purpose of registration, under the provisions of GST Act. 7.4 In this regard, we invite to reference to the definition of "Aggregate Turnover", in terms of Section 2(6) of the CGST Act 2017, which reads as under: "aggregate turnover" means the aggregate val....
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....lling under SAC 9971, are exempted under Entry No.27(a) of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. Thus the interest earned by the applicant, out of the deposits/loans/advances extended, amounts to consideration and is exempted by virtue of entry number mentioned supra. Therefore in the instant case extending the deposits/loans/advances by the applicant is nothing but exempted service and the actual amounts of deposits/loans/advances become the value of the service. Thus these amounts are to be included in the aggregate turnover for registration, under the provisions of GST Act. 7.7 Partner's salary, received as partner, from applicant's partnership firm : The applicant is in receipt of certain amount termed as partner's salary from the firm where the applicant is also a partner. The applicant has not furnished any documents relevant to the issue, such as copy of agreement, appointment order etc., so as to decide whether the applicant is an employee of the partnership firm or not. In case. if the applicant is a working partner and is getting salary then the said salary is neither supply of goods nor supply of service in terms of clause 1 of Schedule III ....
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....ax (Rate) dated 28.06.2017. Thus the value of the said services of the applicant being a Non-Executive Director are includable in the aggregate turnover, as it is the value of the taxable services supplied by the applicant, though the tax is discharged by the private limited company, under reverse charge mechanism. 7.9 Rental income on Commercial Property : The transaction of rental/lease of commercial property amounts to supply; applicant receives periodical income towards the impugned supply of service 86 the same is in the course or furtherance of business and hence the said transaction amounts to supply in terms of Section 7(1)(a) of the CGST Act 2017. Thus it is a taxable supply of service having SAC 997212 and therefore the value of such supply is to be included in the aggregate turnover, for registration. 7.10 Rental income on Residential Property: The transaction of rental/lease of residential property amounts to supply; applicant receives periodical income towards the impugned supply of service 8; the same is in the course or furtherance of business and hence the said transaction amounts to supply in terms of Section 7(1)(a) of the CGST Act 2017. However "Services....