GST AAR ruling in the Columbia Asia judgment – needs reconsideration!
By: – pranav deshpande
Goods and Services Tax – GST
Dated:- 29-8-2018<\/p>\n
Brace for more hiccups.
\nThe AAR have given a ruling in the case of Columbia Asia Hospitals Pvt. Ltd. = 2018 (8) TMI 876 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA
\nBefore we analyze the ruling, let us look at some facts:
\nColumbia Asia Hospitals Pvt Ltd (hereafter, referred to as "applicant") is a private company, rendering health care services. They are operating in 6 States, with 11 hospitals or units. They have 6 units in Karnataka alone. They have their corporate office in Karnataka. Accounting, administration and IT systems are maintained from this office, by employees ap<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n per AAR). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 9;salaries' under Income tax Act and TDS is deducted accordingly. To hold that he is also partly acting as a 'consultant' to the employer's branch offices would change the character of his income and other related obligations, as well. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST AAR ruling in the Columbia Asia judgment – needs reconsideration!By: – pranav deshpandeGoods and Services Tax – GSTDated:- 29-8-2018 Brace for more hiccups. The AAR have given a ruling in the case of Columbia Asia Hospitals Pvt. Ltd. = 2018 (8) TMI 876 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA Before we analyze the ruling, … Continue reading “GST AAR ruling in the Columbia Asia judgment – needs reconsideration!”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13412","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13412"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13412\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nInstead of becoming emotionally agitated by this ruling, which would doubtless have far reaching consequences, it may be useful to analyze certain definitions of 'employer' and 'employee'.
\nThe fact is – 'employer' 'employee' and 'in the course of employment' are not defined under CGST Act.
\nBut they are defined, elsewhere.
\n'Employer' is defined under section 2(1)(e) of Employees' Compensation Act and Section 2(e) of the Minimum Wages Act and in both these definitions, employer as a general entity, has a separate existence and location is not relevant.
\nSimilarly, 'Employee' is defined under section 2(f) of the Employees' Provident Fund Act, 1952 and there too, <\/p>\n
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\nFurther, nowhere in the labour laws, is the employment location-based. Because if that logic is applied, even the MD or CEO of a company, who is technically the company's employee, would be regarded as a 'consultant' to other offices, in the performance of his executive duties.
\nI have the highest regard and respect for the august offices of the AAR and the judiciary. However, with all due respect, I believe that in light of the above, the ruling needs reconsideration.
Schol<\/p>\n
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