In Re: Andhra Pradesh Technology Services Limited
GST
2018 (11) TMI 487 – AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – 2018 (18) G. S. T. L. 840 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – AAR
Dated:- 4-9-2018
AAR\/AP\/11(GST)\/2018 in Application No. AAR\/16(GST)\/2018
GST
SRI. J.V.M SARMA AND SRI. AMARESH KUMAR, MEMBER
\nPresent for the Applicant: Sri G. Jacob Victor, Executive Director (FAC) (Authorized Representative)
\nPresent for the Jurisdictional Officer: No Remarks Received
\nNote: Under Section 100 of the APGST Act'2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under section 99 of APGST Act'2017, within a period of 30 days from the date of service of this order.
\nM\/s. ANDHRA PRADESH TECHNOLOGY SERVICES BUILDING (3RD FLOOR, MC ROAD, VIJAYAWADA- 520010 (hereinafter also referred as applicant) having GSTIN: 37AABCA7630E3ZW, are engaged in supply of services.
\n2. The applicant has filed an<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ictor, Executive Director (FAC), an Authorised Representative on behalf of applicant, has appeared on 19.07.2018 and submitted his arguments. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n used any amount from the amount accrued from collection of Transaction Fee. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, State Government, Union territory; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n vice charges @5% of e-Procurement Corpus fund and e-Procurement Transaction fee will be paid to APTS on monthly basis. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n In this regard, this is to state that as applicant has made an undue enrichment by way of collection of tax which is not legally permitted, is a subject matter of forfeiture under sec. 174(2) (d) & (e). The issue does not fall under the ambit of Advance Ruling Authority. However, the applicant directed to obtain the procedure for remittance from the respective jurisdictional authorities. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: Andhra Pradesh Technology Services LimitedGST2018 (11) TMI 487 – AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – 2018 (18) G. S. T. L. 840 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – AARDated:- 4-9-2018AAR\/AP\/11(GST)\/2018 in Application No. AAR\/16(GST)\/2018 GSTSRI. J.V.M SARMA AND SRI. AMARESH KUMAR, MEMBER Present for the Applicant: Sri … Continue reading “In Re: Andhra Pradesh Technology Services Limited”<\/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-14908","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14908","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=14908"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14908\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nFacts of the case as submitted by the applicant:
\n5. The Government has taken up e-procurement as one of the major e-Governance initiatives. It automates the procurement and purchase procedures of A.P. Government starting from demand aggregation to procurement and fulfillment of contract. The basic objective of this project is to use the tools of IT to introduce best practices in electronics procurement across Government departments.
\n6. The Government issued G.O.Ms.No.4, dated 17.02.2005 on business Model and Collection of e-Procurement Transaction Fee Service Tax (para 9(c). As the project is PPP model, the Services provider use to collect the Transaction Fee and Service Tax and the Service Tax is being paid by the Service Provider. Since, the Service provider contract was expired, vide G.O.Ms.No.11, dated 23.07.2010, ITE&C Department directed<\/p>\n
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\n9. The Government has issued G.O.Ms.No.17, dated 31.10.2017 stating the applicant will be paid service charge of 5% on e-procurement Transaction Fee for the services rendered i.e., maintenance of accounts, co-ordination with service provider etc. Further, in the G.O., it is specified that balance 95% of e-procurement Transaction Fee shall be managed by the applicant in a separate account. These funds will be used for innovate projects taken up through the applicant with prior approval of ITE&C Department, and the e-Procurement portal maintenance, support and up gradation etc., as defined in G.O.Ms.No.23, dated 03.08.2005.
\n10. The Transaction Fee amount belongs to ITE&C Department and the applicant was assigned the responsibility of management of account. The applicant is entitled for service charges @ 5% from the Transaction Fee collected through e-Procurement portal. The applicant is remitting the GST on th<\/p>\n
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\n(b) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
\n(c) transport of goods or passengers; or
\n(d) any service, other than services covered under entries (a) to (c) above, provided to business entities
\nFurther, G.O.Ms.No. 11, issued by Information Technology & Communications Dept., e-Procurement, dt. 23.07.2010, in para-6, ordered as under;
\n“6. The Government after careful examination hereby issued orders:
\ni. APTS shall open account for the collection of transaction fee through e-procurement platform.
\nii. M\/s. C1 India shall change the account of transaction fee collections to the account of APTS w.e.f. 00.00 hours of 01.08.2010 as C1 India contract is ending on 31.07.2010.
\niii. M\/s. C1 India shall make the necessary cha<\/p>\n
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\n b. Out of balance 95% of e-Procurement Corpus Fund, 47.50% shall be the share of respective user departments, which floated the tender and 47.50% shall be the share of IT.E&C Department.
\n c. The IT.E&C Department's share of 47.50% of e-Procurement Corpus fund and balance 95% of e-Procurement Transaction fee shall be managed by APTS in a separate account. These funds will be used for the innovative Projects taken up through APTS with the prior approval of IT.E&C Department and e-Procurement portal maintenance, support, up gradation etc., as defined in G.O.3rd read above.
\nObservations of the Authority:
\nThe applicant has sought clarification where the tax liability arises on e-procurement transaction fee collected on behalf of ITE&C Department. As per the information filed by the applicant, it is observed that the applicant is acting as fund-manager. The applica<\/p>\n
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\nIn view of the above observations & facts of the case, the ruling is given as under:
\nRULING
\nQuestion No. 1:
\nWhether the e-procurement Transaction Fee collected on behalf of IT E&C department results in supply of goods or services or both, within the meaning of Supply as defined law?
\nReply : It is “Supply” as defined in SGST Act,2017 and CGST Act,2017
\nQuestion No.2:
\nWhether the Tax liability arises on e-procurement Transaction Fee collected on behalf of ITE&C department?
\nThe liability does not arise due to the amounts so collected is for services rendered by State Government i.e., ITE&C Departm<\/p>\n
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