TaxTMI 
TaxTMI 
2021 (7) TMI 479
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....Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under. 3. The applicant requested advance ruling on the following points; 1. We are suppliers of spare parts of agricultural machinery to Kerala Agro Machinery Corporation Ltd (KAMCO). Does KAMCO come under bodies eligible to deduct TDS as per Section 51 of the CGST Act? If yes, since when can the TDS be deducted? 2. Whether there is any arrangement we can avail through which we may be ex....
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....working capital. The input tax paid by them at 18% rate would at the time of supply be already available with the Department. In view of this situation, the applicant has certain queries relating to the applicability and implementation of Section 51 requirement for business like theirs whose input tax always exceeds output tax due to the nature of their business activities. 4.2. The intention of provision for TDS deduction by awarders is to ease the burden of supplier taxpayer by having the awarder take up the duty of handing over a portion of the supplier's tax payable, to the Government. In the case of businesses where due to the very nature of business input tax is most certainly higher than the output tax, deduction of TDS by the....
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....ion (2) of Section 97 of the CGST Act. The points raised for Advance Ruling relate to the liability of TDS under Section 51 of the CGST Act on the part of; (a) Department or Establishment of the Central Government or State Government; or (b) Local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government to deduct tax at source from the payments made to suppliers of goods or services or both. In respect of suppliers who are engaged in the taxable supply of goods of inverted tax structure there are separate provisions in the CGST Act. The process of manufacturing incurs considerable amounts towards direct expenses for manufacturing and resul....
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....nd accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought. (2) The question on which the advance ruling is sought under this Act, shall be in respect of- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant wi....
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.... 7.5. In the instant case the first and the fifth question raised by the applicant pertains to the applicability of the provisions of Section 51 of the CGST Act to a third person namely; Kerala Agro Machinery Corporation Ltd. As discussed above, the provisions of the CGST Act governing advance ruling does not provide for an applicant to seek a ruling regarding the applicability of the provisions of the Act or the notification issued there under to a third person other than the applicant. 7.6. Further, the relevant portion of Section 51 of the CGST Act is extracted below; "51. Tax deduction at source- (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate- (a) a departm....