In Re: Erode Manjal Vanigarkal Matrum Kidangu Urimaiyalargal Sangam
GST
2018 (9) TMI 1258 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (17) G. S. T. L. 151 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 30-8-2018
TN\/06\/AAR\/2018
GST
MS. MANASA GANGOTRI KATA AND THIRU S. VIJAYAKUMAR, MEMBER,
\nNote : Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT\/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
\nAt the outset, we would like to make it clear that 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 provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a ref<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ermitted by the Erode Marketing Committee (hereinafter referred as EMC) Erode. The members permitted by EMC as agents own their godowns where the agriculturists produce are kept, stored in safe custody. A tender is conducted at the premises\/ yard of the EMC. The tender is concluded when the selling price is agreed by the agriculturists. Thereafter the buyer raise a bill on the basis of weighment receipt in favour of the agriculturists with full details. An agreement among and between agriculturists, agents and buyer is executed for payment. The buyer issues a cheque for the sale of the agricultural produce to the agents as per the agreement. On realization, the agent takes his commission for service rendered, balance being returned to agriculturist. They have stated that the agent is neither a seller nor a buyer but is a supplier of service done to agriculturalist\/producer and is exempt. The applicant stated that he is supplying service to agriculturist which is exempt under Heading 99<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t is seen that the applicant is society registered under Tamilnadu Societies Registration Act 1975 whose members are governed by Erode marketing Committee which an Agricultural is marketing committee licensed under Tamilnadu Agricultural Produce Marketing (Regulation) Act 1987. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ase of commission sales, no allowance other than a trade allowance separately prescribed shall be charged either to seller or to buyer. If commission is charged to both buyer and seller, the total thereof shall not exceed the maximum prescribed in sub -clause (14). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Board or services provided by a commission agent for sale or purchase of agricultural produce” = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n al produce must take place on in notified areas which are licensed from a Market Committee under that Act. These Commission agents provide the space for storage, weighment and facilitate buying and selling of the produce. The word 'Commission agent' under SI.No. 24 of the Notification No. 11\/2017-CT (Rate) is not specifically defined in the said notification but Section 2(5) of the CGST Act defines 'agent' as a person, including commission Agent who carries on the business of supply or receipt of goods or services or both on behalf of another. From the supporting documents and materials filed by the applicant and the various statutory provisions discussed above, it is clear that the activities of the applicant are those services provided by an agent to the farmer, generally provided in relation to agricultural produce in the primary market regulated by a marketing committee. Sub clause 24(14) of the Bye-Laws also specifies that the commission charges are towards Godown <\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: Erode Manjal Vanigarkal Matrum Kidangu Urimaiyalargal SangamGST2018 (9) TMI 1258 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (17) G. S. T. L. 151 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, TAMILNADU – AARDated:- 30-8-2018TN\/06\/AAR\/2018 GSTMS. MANASA GANGOTRI KATA AND THIRU S. VIJAYAKUMAR, MEMBER, Note : Any appeal against the advance ruling … Continue reading “In Re: Erode Manjal Vanigarkal Matrum Kidangu Urimaiyalargal Sangam”<\/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-13887","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13887","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=13887"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13887\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nSection 2(7) of 'The Tamilnadu Agricultural Produce Marketing (Regulation) Act 1987, defines 'Commission agent' in respect of agricultural produce marketing as follows:
\n2. (7). “Commission Agent” means a person who by himself or through his servants, buys and sells agricultural produce for another person keeps it to his custody and controls it during the process its purchase and sale, and collects payment therefore from the buyer and pays it to the seller, and receives by way of remuneration a commission or percentage upon the amount involved in each transaction.
\nSection 7(8) specifies that no person shall
\n (a) Set up, establish or use, or continue or allow to be continued any place for the purch<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe applicant submitted the criteria for the Commission Charges subject to the Bye-Laws 24(14) are as follows:
\nSl. No.
\nMonth
\nCommission Amount
\n1.
\nUp to 12 Months
\n3%
\n2.
\nUp to 24 Months
\n4%
\n3.
\nAbove 24 Months
\n5%
\nAlso from the agreement note between agriculturist, buyer and agent, weighment slip and invoices furnished, it is seen that the invoice is raised by the agent on the buyer wherein the agriculturist is mentioned as the seller and is signed by the Farmer, agent and the buyer. All the three documents mention the weight of the goods and the sale price and separately indicate the commission amount. Further, it is seen that the buyer pays the agent who after deducting his commission for the services rendered pas<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nNIL
\n
\nExplanation 4 (vii) and (viii) of the Notification No. 11\/2017-CT (Rate) states that:
\n(vii) “agricultural produce” means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.”
\n(viii) “Agricultural Produce Marketing Committee or Board” means any committee or board constituted under a State law for the time being in force of the purpose of regulating the marketing of agricultural produce.
\nSection 2(5) of CGST Act defines 'agent' as
\n(5) “agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an au<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
For full text:-Visit the Source <\/a><\/p>\n