TaxTMI 
TaxTMI 
2021 (1) TMI 1196
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.... 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? ii. If answer to question i is in affirmative, would such services provided by the applicant 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 Services Tax Act, 2017 ('CGST') and corresponding Notifications No. - KA.N.I.-2-843/X1-9 (47) / 17-U.P. Act-1 - 2017 - Order - (10) - 2017 Lucknow: Dated June 30, 2017 issued under Uttar Pradesh Goods and Services Tax Act, 2017 ('UPGST Act'), where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and UPGST, respectively. 4) As per the decl....
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....x (Rate) dated 25th January,2017: SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent) Condition 1 2 3 4 5 3A Chapter 99 Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. NIL NIL 7) The applicant further submitted that based on the Notification No. 12/2017 & 02/2018 issued under Central Tax (Rate) and Notification No. 843 dated 30.06.2019 issued by UP Government, GST is exempt in case of DPR and PMCs. They also submitted copy of Order No. 22 dated 25.01.2019, in the case of M/s. Rudhrabhishek Enterprises Ltd, Noida, Uttar Pradesh wherein full exemption was granted by the Authority for Advance Ruling Uttar Pradesh. 8) The appli....
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.... and the Project Management Consultancy Services (PMCS) for 'PMAY' would qualify as an activity in relation to functions entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India, and if so, 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 serial number 3 of Notification No. 12/2017-Central Tax (Rate) dated 28 June, 2017 where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and UPGST, respectively. 13) We have also examined the Notification No. 12/2017-Central Tax, dated 28.06.2017 as amended vide Notification No. 2/2018-Central Tax dated 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. 14) We find that Sl. No. 3 of the Notification No. 12/2017-CT (Rate) dated 28.06.20....
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....al Government', in relation to anything done or to be done after the commencement of the Constitution, means the President. As per Article 53 of the Constitution, the executive power of the Union shall be vested in the President and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution. Further, in terms of Article 77 of the Constitution, all executive actions of the Government of India shall be expressed to be taken in the name of the President. Therefore, the Central Government means the President and the officers subordinate to him while exercising the executive powers of the Union vested in the President and in the name of the President. State Government Similarly, as per clause (60) of section 3 of the General Clauses Act,1897, the 'State Government', as respects anything done after the commencement of the Constitution, shall be in a State the Governor, and in an Union Territory the Central Government. As per Article 154 of the Constitution, the executive power of the State shall be vested in the Governor and shall be exercised by him either directly or indirectly through officers subordina....
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....y services ('PMCS') have been provided by the applicant to SUDA (State Urban Development Agency). SUDA has been established as a state level nodal agency, under the department for Urban Employment and Poverty Alleviation by Uttar Pradesh Government. This authority is registered under the 'Registration of Societies Act' since 20th November' 1990. As per the "Memorandum of Association of State Urban Development Agency", its main objective shall be for "betterment of urban population" through comprehensive approach. 17) We find that SUDA is neither covered in the definition of Central Govt. nor State Govt. Moreover, SUDA is also not covered in Local Authority as the definition of local authority is very specific and means only those bodies which are mentioned as local authorities in clause (69) of section 2 of the CGST Act, 2017. The applicant has not produced any document to establish whether;- (i) SUDA has been set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under Article 2....
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.... 18. Regulation of slaughter houses and tanneries. 19) Now, we come to examine the scope of work under work order No. 1190/01/29/HFA/2018-19 dated 16.01.2019, as provided by the applicant- A. Scope of work under Preparation of DPR:- • Preparation of detailed Project under vertical IV of PMAY (U). 100% physical verification includes door survey, collection of land documents and consent letters from the beneficiaries as per HFAPOA (Housing for All by 2022- Plan of Action), data collection, data verification and data compilation. • Inclusion of present status and proposed works of infrastructure details. • MIS Entry. • Key stakeholder consultations. • Preparation of beneficiaries wise detailed Architectural/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 ....
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....he actual number of technical and financial personnel to be deployed and the deployment schedule shall be prepared by the PMC and manually agreed upon after award of work. • Generate and submit to the ULBs time to time progress reports in the agreed formats and the agreed frequency. • PMC shall also apprise the beneficiaries of the progress or activities of the project on fortnightly/monthly basis. • Cash flow Chart -Actual and Scheduled & Bar Chart Actual and Scheduled Status of payments of beneficiaries. Photographs of various stages (Before excavation, Foundation, Plinth Level, Lintel Level & Completion) of DUs of each beneficiary, Geo tagging of constructions all the stages Visitors' Site Inspection, Settlement of all accounts of the beneficiaries with the ULBs. • Provide project completion report/closure report which shall contain all technical and financial information of the project. 20) We observe that the applicant has not submitted any relevant document to establish the coverage of services provided by them in particular functions entrusted to a municipality under the twelfth Schedule to Article 243W of the Consti....