TaxTMI 
TaxTMI 
2022 (11) TMI 1067
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted by Mr.K.Prabhu Junior Standing Counsel for R5 ORDER This Writ Petition has been filed to direct the Respondents 1 to 4 to consider the representation of the Petitioner, dated 12.08.2022, seeking grant of GST components along with interest to be paid to the 5th Respondent. 2. The learned counsel for the Petitioner submitted that the Petitioner is a Partnership Firm providing services of land development, site grading, road formation and connected works for various National Highways / State Local Authorities and Private concerns in the State of Tamil Nadu. The Petitioner executes the works as main contractor and also executes work as sub-contractor to other main contractors. He further submitted that the Petitioner was registered....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at the Petitioner was paying VAT at the rate of 2% as per Section 6 of the Tamil Nadu Value Added Tax Act, 2006. Service tax was not paid since the services were exempted vide Serial Nos. 12 and 13(a) of Notification No.25 of 2012 - ST dated 20.06.2012. There was a change in the rate of tax when GST was introduced and service tax and VAT was subsumed. The rate of tax under GST which started with 18% was reduced to 12% and was enhanced to 18%. It is submitted that variation in the rate with the introduction of GST has compounded the problems for the contractors. As a matter of fact, realising the difficulties faced by the contractors, the Government of Tamil Nadu has also issued two notifications in G.O.(Ms)No.264, Finance (Salaries) Departm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....low: - Under works contract entered in to prior to GST, value of subsumed taxes under GST needs to be separated out from the contracted amount to arrive at the value of supply. The key issue is to estimate the value of subsumed taxes carefully and accurately as possible. - Considering the necessity to provide for a transparent means of estimating subsumed tax, Government direct that following methodology shall be adopted for estimating the value of subsumed taxes. - In cases where the supplier has furnished break up of taxes with in the quoted value at the time of submission of tenders, it shall be taken as the basis for estimating the value of subsumed tax; If after negotiation, the contracted value is less than ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vernment of Tamil Nadu in support of the fact that GST ought to be paid by procuring entities while calling upon the Petitioner to discharge the applicable GST. In the meanwhile, the Petitioner was served with the notice by the 5th Respondent fixing dates for personal hearing, pursuant to the show cause notice. Two personal hearings have already been granted and the final hearing is fixed on 17.11.2022 by the 5th Respondent. Thereafter, the Petitioner have submitted a representation to the State Government, wherein, it was requested that applicable GST on the Contract may be worked out and GST may be released to the Petitioner without any delay. However, the said representation is stated to be pending before the Respondents. The Petitioner ....