The Gujarat Authority of Advance Ruling (AAR) ruled that consultancy Services for preparation of design and detailed estimation of town hall are not ‘Pure Services’.
The applicant, M/s. INI Design Studio pvt. ltd. are engaged in providing a wide range of professional consulting services including Architecture, Engineering (MEPF), Planning, Urban Design, Landscape, Sustainability, Research and Art, Building Design, Interior Design, Surveying, Environmental Sciences, Project Management and Project Economics.
The applicant has stated that they support a diverse range of public and private sector projects at every stage, from the conceptualization and financial feasibility study to project completion and beyond and that they provide services for projects in India and internationally in Buildings, Industry, Infrastructure and Social Sectors such as Residential, Mixed-Use, Retail, Pharmaceuticals, Healthcare, Educational and Civic projects.
The applicant has submitted that their services are covered by SAC Code 99832-Architectural services, urban and land planning and landscape architectural services liable to tax at 18%.
Presently they have received work orders from various local authorities like the Surat Municipal Corporation, Ahmedabad Urban Development Authority, Pune Municipal Corporation, State Government of Maharashtra (through Executive Engineer, Public Works Division, Pune), for Government projects namely Rajkot Smart City Development ltd. and from Government Entity namely Gujarat Technological University.
The applicant has sought advance ruling on issues whether Design and Comprehensive Consultancy Services from concept to completion for State-of-Art High rise office building provided to Surat Municipal Corporation; Consultancy Services for preparation of design and detailed estimation of town hall at Dehgam, provided to Ahmedabad Urban Development Authority; Medical and Design Consultancy Services for establishment of Medical College, Teaching Hospital and Nursing College at Pune, provided to Pune Municipal Corporation; work of Preparation of Master Plan of Green Field Areas and Project Management Consultancy Work for Development of Green Field Areas provided to Rajkot Smart City Development ltd. and Consultancy Services for Architectural and Engineering design/working drawing of Baramati Hospital provided to Executive Engineer, Public Works(East) Division, Pune covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated June 28, 2017.
The coram consisting of Sanjay Saxena and Mohit Agarwal held that the exemption under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated June 28, 2017 is not available to the applicant in any of the aforementioned agreements/contracts entered into by them.Subscribe Taxscan AdFree to view the Judgment
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