TaxTMI 
TaxTMI 
2020 (1) TMI 1428
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....Project. 3) The Applicant has submitted application for Advance Ruling dated 04.09.2019 (application completed in all aspects received by the authority on 13.11.2019) enclosing duly filled Form ARA-01 (the application form for Advance Ruling) along with certain annexure and attachments. 4) The Applicant in his application sought clarification and Advance Ruling as follows : i. Whether the Project Development Service (i.e. Detailed Project Report Service) and Project Management Consultancy services ('PMCS') provided by the applicant to recipient under the Contract from State Urban Development Authority (herein after referred as "SUDA") and the Project Management Consultancy services ('PMC') under the Contract for Pradhan Mantri Awas Yojna (PMAY in short) would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India? ii. If answer to first question is in affirmative then, whether, such services provided by the applicant would qualify as Pure services (excluding works contract service or composite supplies involving supply of any goods) as provided in ser....
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....anagement Consultancy Services (PMCS) to the recipient under the contract for State Urban Development Agency (SUDA); and the Project Management Consultancy Services under Pradhan Mantri Awas Youjna (PMAY) Urban. ii. That the SUDA has been established as state level local body, under the department for Urban Employment and Poverty Alleviation by UP Govt. and the agency was registered under Registration of societies Act. iii. That the scheme PMAY (Urban) is a scheme to provide central assistance to Urban Local Bodies (ULBs) and other implementing agencies through States/UTs for rehabilitation of existing slum dwellers using land as a resource through private participation and affordable housing in partnership. iv. This scheme is converged with other schemes to ensure houses have a toilet, water, sanitation, sewerage, road, Saubhagya Yojana electricity connection, Ujjwala Yojana LPG gas connection, access to drinking water and Jan Dhan banking facilities, etc. v. That as per contract which were awarded to applicant by SUDA for preparation of Detailed Project Report and Project Management Consultancy for PMAY and these services rendered by the applic....
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....25.01.2018 issued by the Central Government and corresponding Notification No.- KA.N.I.-2-843/X1- 9 (47) / 17-UP. Act-1 -2017 - Order - (10) - 2017 Lucknow, dated June 30, 2017 issued by the State Government, Uttar Pradesh. 11). Now first question placed before us as to whether the Project Development Service (i.e. Detailed Project Report Service) and Project Management Consultancy services ('PMCS') provided by the applicant to recipient under the Contract for SUDA and the Project Management Consultancy services ('PMC') under the contract for PMAY would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India or not. To proceed further, we need to examine the purpose and scope of work for which the applicant has gone into contract with SUDA and PMAY. 12), SUDA has been established as a state level nodal agency, under the department for Urban Employment and Poverty Alleviation by Uttar Pradesh Government. This agency is registered under the 'Registration of Societies Act' since 20th November' 1990. As per the "Memorandum of Association of State Urban Development Agency", ....
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....tectural/ Engineering designs. Drawing and estimates for all sizes of plots, project structuring under appropriate development and funding mechanism. • Assistance in obtaining appropriate approvals from concerned agencies/ departments. • Appropriating all necessary data in reference to Slum Free city Plan in the DPR. • The DPR should be complete in all respect with all report drawings, statements and documents necessary for obtaining the grant from the Government of India. B. Scope of Work under Project Management Consultancy (PMC):- • PMC will coordinate, execute and monitor the activities leading to the construction of approved DUS (Dwelling units) by Govt. of India. • All the activities till the completion of DUS will be taken care of by PMC. • PMC shall also administer the works by the beneficiaries and ensure that the agreement between the ULBs and beneficiaries whether related to quality or quantities of work are executed in accordance with its provisions. • PMC shall attach Beneficiaries to the project in PMAY-MIS and also upload Annexure 7A & 7C. • PMC shall execute al....
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....• Provide project completion report/ closure report which shall contain all technical and financial information of the project. 15). Accordingly, in view of forgoing discussion we are of the view that the Consultancy services rendered by the applicant under the contract with State Urban Development Agency, Uttar Pradesh (SUDA), and for PMAY are in relation to functions entrusted to Municipalities under Article 243W and to Panchayats under Article 243G of the Constitution of India. 16). Now coming to second question for consideration before us is a corollary to the first question in case the answer to first question is in affirmative. Since we have already made our findings in affirmative as far as first question is concerned, we now move to examine the second question as to whether such services provided by the applicant would qualify as "Pure services (excluding works contract service or other composite supplies involving supply of any goods)" as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017, as amended (S. No. 3A) by Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under Central Goods and Servi....