TaxTMI 
TaxTMI 
2020 (5) TMI 387
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....man Chaturmas Pravas Vyavastha Samiti Trust, No.645/1, Burgal Mutt Road, V.V. Puram, Bengaluru 560004 (herein after referred to as Appellant) against the advance Ruling No. KAR/ADRG 102/2019 dated 30th Sept 2019 = 2019 (10) TMI 1136 - AUTHORITY FOR ADVANCE RULING, KARNATAKA. Brief Facts of the case: 3. The Appellant is a religious charitable trust registered under Section 12 AA of the Income Tax Act, 1961 carrying out religious and charitable activities. The Appellant is principally engaged in the field of spreading knowledge and advancement of Jain Dharma. 4. The Appellant conducted a religious function from July 2019 to November 2019 at Kumbalagodu Village, Mysore Road, KengeriHobli, Bengaluru South Taluk. The main activities conducted were Pravachanas, Spiritual Speeches, Dhyana, Meditation, prayer, etc. The Appellant provided boarding and lodging facility to the devotees for which purpose, the Appellant erected temporary residential rooms and facilities consisting of the following categories: i. Category-I: 2 BHK 430 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC, and having two rooms, hall, kitchen, rest-room + toilet, with co....
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....verages to the devotees, where consideration is received by registered person directly from devotees? f) Whether applicant is liable to pay tax for acting intermediary for booking hotel rooms to the pilgrims from outside? 6. The Karnataka Authority for Advance Ruling vide ruling No KAR ADRG NO 102/2019 dated 30-09-2019 = 2019 (10) TMI 1136 - AUTHORITY FOR ADVANCE RULING, KARNATAKA held as follows: 1. The applicant is liable to pay tax in renting of temporary residential rooms for consideration to the devotees and renting of space for shops and stalls. 2. The applicant is liable to pay tax on renting of temporary residential rooms of all categories if the declared tariff of a unit of accommodation is Rs. 1000-00 or more per day or equivalent. 3. The applicant is liable to pay tax on renting of space for stalls. 4. The applicant is liable to pay tax on supply of food and beverages at subsidized rates to the devotees 5. The applicant is liable to pay tax on providing space for registered person without consideration for supply of food and beverages to the devotees, only if the applicant and such registered person are covered under the definition of "related persons" as de....
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..... 8.3. The Appellant also applied for condonation of delay of 23 days in filing this appeal. They submitted that the impugned order was received by them on 10-10-2019 and the appeal should have been filed on or before 09-11-2019. However, the person in charge of taxation matters was busy with the religious function being conducted by the Trust between July 2019 to November 2019 and hence the filing of the appeal was delayed by 23 days. They requested for condonation of the delay which was on account of bona fide reasons. PERSONAL HEARING: 9. The Appellants were called for a personal hearing on 31st January 2020 and were represented by Shri. Sanjay M. Dhariwal, Chartered Accountant who reiterated the submissions made in the grounds of appeal. He confirmed that the Appellant was filing the appeal only on the limited ground that exemption is denied on the charges for dormitory and 2 BHK and stressed the fact that the word 'unit' used in the notification should refer to a bed and to a room. DISCUSSIONS AND FINDINGS 10. We have gone through the records of the case and considered the submissions made by the Appellant in their grounds of appeal as well as at the time of personal hear....
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....rooms and toilets and no cleaning and cooking facility services. (iv) Category-IV: Single room, 150 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC and having rest room and toilet. No cleaning and cooking facilities. (v) Category-V: Dormitory consisting 12 beds, including facilities such as water, electricity, two AC, bed, pillow, bedspread, common rest rooms and toilets. The charges for accommodation under Category I, II, III and IV is on per room basis and is less than Rs. 1000/- per room per day. The charges for accommodation under Category V i.e dormitory is on per bed basis ranging from Rs. 250/- per bed per day but less than Rs. 1000/- per bed per day. The Appellant has claimed the benefit of exemption from GST on the accommodation provided under the above five categories in terms of entry No 13of Notification No 12/2017 CT (R) dt 28-06-2017. The lower Authority has held that the Appellant is liable to pay tax on renting of temporary residential rooms of all categories, if the declared tariff of a unit of accommodation is Rs. 1000/- or more per day. The Appellant is aggrieved by this ruling in so far as the renting of 2BHK and....
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....to look at the exclusions given in the proviso to this clause which states that the exemption shall not apply to the following: a) renting of rooms where the charges are Rs. 1000/- or more per day, b) renting of premises, community halls, kalayanamantaps or open area, and the like where charges are Rs. 10,000/- or more per day; c) renting of shops or other spaces for business or commerce where charges are Rs. 10,000/- or more per month. On a conjoint reading of the clause (b) of Sl.No 13 and the exclusions, it is evident that the exemption under clause (b) applies to renting of rooms where the charges are less than Rs. 1000/- per day, renting of premises, community halls, kalayana Mantapsor open area, and the like where charges are less than Rs. 10,000/- per day and to renting of shops or other spaces for business or commerce where charges are less than Rs. 10,000/- per month. 15. In the instant case, the Appellant had erected temporary accommodations at Kumbalagodu Village, Mysore Road, KengeriHobli, Bangalore North Taluk where the religious event was conducted. We find that the Appellant is not renting out 'rooms' but rather is renting out units of accommodation comprisin....