2023 (8) TMI 1553

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....he applicant who had sought it in respect of any matter referred to in sub- section (2) of Section 97 for advance ruling. (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103(2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. 4. Advance Ruling obtained by the applicant by fraud 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 Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain prov....

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.... Mechanism (RCM)? The Applicant is M/s Foster Wheeler (G.B.) Limited, Project Office, 6th Floor, Zenith Building, Ascendas IT Park, CSTR Road, Taramani, Chennai, Tamilnadu 600 113 (here in after referred as the Applicant) is registered under the GST Act, 2017 vide GSTIN No. 33AABCF3459N1ZF. The Applicant has sought Advance Ruling on the following questions: 1. Whether the legal cost apportionment by FWEL to the Applicant amounts to the supply under GST? 2. If so, whether the Applicant is required to pay tax under Reverse Charge Mechanism (RCM)? 2. In this regard the Applicant stated the following: • That the Applicant is a Project Office established in India by M/s Foster Wheeler (G.B.), United Kingdom ("FWGB") for ....

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....irectly make the payment for expenses related to arbitration proceedings to the third party service providers, invoices raised by the service provider on FWEL, then the expenses will be recharged by FWEL to FWGB(Project Office) by apportioning the expenses incurred cost to cost basis without any mark-up and the Applicant would pass an on accounting entry in the books upon receiving invoice in respect of such apportionment. • That FWEL raised an invoice for GBP 45,68,086 (INR 41,33,69,300/-) on 28.03.2018 (copy submitted) on the Applicant towards such legal expenses and the Applicant accounted for such expenses in its book of accounts during March 2018. 3.0. In their interpretation of law in respect of the questions raised, t....

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....ty for which the amount of legal expenses has been apportioned towards the Applicant; There is no positive act done by FWEL that could result in a supply except making payment for incurring expenses for the Applicant. 3.4. They relied upon some judgments that no tax can be levied on attendant monetary transactions and they contended that the Applicant is not required to discharge any tax under RCM for payment made to FWEL towards reimbursement of legal expenses incurred. They also quoted few judgments to establish that sharing of expenses will not amount to service. 3.5. Hence they submitted that the payment to be made by the Applicant to FWEL is not for provision of any service by FWEL and thereby the Applicant is not liable to pay tax ....