TaxTMI 
TaxTMI 
2024 (4) TMI 358
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.... or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. 1. At the outset, we would like to make it clear that the provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act are in pari materia and have the same provisions in like matter and differ from each other only on few specific provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act, 2017 would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act, 2017. 2. The applicant submitted a copy of challan dated 10.06.2023 evidencing payment of application fees of Rs. 5,000/- ....
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....S.C. 1478)) iii) The respondents are directed not to deduct any GST or Service Tax from the salary of the employees sponsored by UPNL. (Kundan Singh vs the State & Others ­Writ Petition No. 116 of 2018 (PIL) In The High Court Of Uttarakhand At Nainital) 3.4 Based on the Above Laws/Rulings the applicant was of the opinion that when a person is employed in the factory premises either directly or through contractor and directly under the control and management of principal employer is "EMPLOYEE" and falls within the Third Schedule of the CGST Act, 2017. Payment to Employees through Contractors is always as good as payment made directly to Employees. They further stated that if tax is collected on the amount of wages earned by the indirectly employed person it leads to increase in the cost of production and is ultimately charged on Consumer/end user and is illegal. Hence the applicant was of the view that GST is payable only on the Portion of Service Charges /Commission Received and not on the wages and other related payment made by Principal Employer to the employees which are only routed through the applicant. 4.1 The applicant is under the administrative control o....
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....yee and whether his service rendered is taxable service; the Honourable Members have deviated from the issue raised and advance ruling sought for and considered the proceedings by the Tax Authority which is entirely different. The proceedings comes to play only when the question as to the service rendered by the contract employees is taxable service or not is decided; the Honourable Members paid attention to the proceeding which is consequential to the ruling confirming the status of contract employee and the service rendered is taxable service; charging tax on the contract Employees' Provident wages seriously affects the public and the end user in general and they have to pay more indirect tax on the commodity or service which is not legally due; the Taxing authority cannot claim tax where there is no tax chargeable and lawful entitlement. 6.2 In the light of the above mentioned points, the Applicant requested to consider their application denovo and also submitted that the proceeding commenced by the authorized officer is not directly related to the issue upon which Advance Ruling is sought for. DISCUSSION AND FINDINGS 7.1 We have carefully considered the submissions mad....
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....y only when the question as to the service rendered by the contract employees is taxable or not is decided. The applicant has also submitted that the proceeding commenced by the authorized officers is not directly related to the issue upon which Advance Ruling is sought for. 7.5 The questions raised in advance ruling application is whether GST is payable only on the service charges / commission or Income received by whichever name by the Agency Supplying Manpower and not on the salary / wages and related payments made to the Employees. Further the applicants' interpretation is that GST is payable only on the Portion of Service Charges /Commission Received and not on the wages and other related payment made by Principal Employer to the employees which are only routed through the applicant. 7.6 In this regard the definition of consideration as provided in Section 2(31) of the CGST Act, 2017 and the provisions regarding Value of Taxable Supply as provided in Section 15 of the CGST Act, 2017, is reproduced below for ease of reference; Section 2. Definitions- (31) "consideration" in. relation to the supply of goods or services or both includes- (a) any p....
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....e considered as consideration and GST would be payable on the entire amount received for provision of services which includes the salary / wages and other related payments made to the employees in the instant case. Further, Section 15 of the CGST Act, 2017 clearly stipulates that the value of supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services where the supplier and the recipient are not related and the price is the sole consideration for the supply. The value of supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than GST. Therefore, it is clear that the entire consideration charged by the supplier of Labour shall be the taxable value for the purpose of GST. 7.7 We find that applicant is of the opinion that the payment to employees through contractors is always as good as payment made directly to employees and that if tax is collected on the amount of wages earned by the indirectly employed person it leads to increase in the cost of production and is ultimately charged on Consumer/ end user and is illegal. Hence....
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....he aggrieved employees through their union have filed a Writ Appeal seeking better pay and the Honourable High Court of Uttarakhand while providing relief has directed not to deduct any GST or Service Tax from the salary of the employees sponsored by UPNL. We find that here the emphasis is to be laid on the word 'from'. The intention is not to deduct GST or Service Tax from the salary of the employees so that the salary of the persons appointed through UPNL, which is lesser compared to the regularly appointed counterparts, is not further reduced. We find that the above ruling has no bearing on the issue raised by the applicant in the subject application. 7.10 We find that it is imperative to mention here that the labour / employee supplied by the applicant are the employees of the applicant and the employee - employer relation as put forth in Schedule III of the CGST Act, 2017 is between the applicant and the labour / employee supplied by him and not between the principal employer and the labour / employee supplied by the applicant. As per the sample work order submitted by the applicant it is seen that the applicant is responsible for paying the salary, and depositing the EPF, ....
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....arising in tax matters to taxpayers including any unregistered persons intending to commence any business activity. It provides an opportunity to all entities both commercial and non-commercial, Government and quasi-Government, statutory bodies, etc., hitherto not registered under any of the indirect tax laws to seek clarification on the taxability or otherwise of their activities after introduction of the GST Act, 2017, where the applicant is also not an exception. Vide first proviso to Section 98(2) which restricts admitting application seeking advance ruling on questions which are already pending in any proceedings, an important check mechanism has been inserted so that the Advance Ruling mechanism does not hinder in or become prejudicial to the proceedings which are already pending or concluded. 7.15 The relevant portion of the Section 98(2) is reproduced below; (2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application: Provided that the Authority shall not admit....