TaxTMI 
TaxTMI 
Service to related person
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....ervice to related person<br> Query (Issue) Started By: - Kaustubh Karandikar Dated:- 14-9-2021 Last Reply Date:- 17-9-2021 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>XYZ (Proprietory Concern) and PQR(Proprietory Concern) are related persons (Brothers). On behalf of PQR, XYZ had paid the amount of Income Tax and other taxes to Govt. and then subsequently recovered from PQR. Will this a....
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....mount to service provided to related person under Schedule - I of Section - 7 and even if there is no consideration, XYZ will be liable to pay GST on it? Reply By Shilpi Jain: The Reply: This will not be liable as there is no supply. This is merely an on behalf payment... Reply By Shilpi Jain: The Reply: Just because 2 persons are related the provisions should not be stretched to such an exten....
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....t to tax each and every kind of transaction between them. Reply By KASTURI SETHI: The Reply: XYZ's activity is not in the course of business or furtherance of business. Hence out of scope of supply as well as Schedule-1. Reply By Ganeshan Kalyani: The Reply: Is this not a support service?. Is the transaction fulfills pure agent concept? Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kal....
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....yani Ji, (i) Is the transaction fulfills pure agent concept ? Yes, Sir. This transaction can be termed as pure agent's activity. (ii) Is this not a support service ?. This transaction/activity cannot be termed as support service inasmuch as this is neither the intention of legislature nor Govt's to tax such transaction. Calling such activity a support service, means stretching a l....
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