The Gujarat Authority of Advance Ruling (AAR) ruled that the activity of providing auditing, accounting, taxation to the Sardar Sarovar Narmada Nigam Ltd. (SSNNL) is liable to Goods and Service Tax (GST).
The applicant, M/s. Dhirubhai Shah & Co. LLP of Chartered Accountant is called as DBS is engaged in providing services in auditing, accounting, taxation etc. The applicant has been appointed for its professional service in respect of maintenance of Accounts and allied items of work in Segment III of SSNNL.
The applicant submitted that SSNNL is incorporated under the Companies Act 1956 wherein 100% equity is owned by the Government of Gujarat. As per the provisions of Companies Act, 1956, company requires to maintain books of account as per double entry system on accrual basis. For the same, the Company has appointed the applicant to provide maintenance of accounts service in the computerized manner in Segment III of the Company.
For the purpose of maintenance of accounts service applicant is required to attend division office as and when required and accounts are required to maintain at division office only. The applicant has provided the agreed service to SSNNL for the Financial Year 2017-18 and issued its Tax Invoice No. 230/2018-19 dated July 4, 2018 amounting to Rs.1,38,680 by charging CGST and SGST under section 9(1) of the CGST Act, 2017 and SGST Act, 2017.
The applicant sought the Advance Ruling on the issue whether the professional service for maintenance of accounts and allied items of work provided to Sardar Sarovar Narmada Nagar Limited, which is a Government of Gujarat undertaking by the applicant is a taxable service under Section 9 (1) of The CGST Act, 2017 or exempted vide Sr. No.3 of Not. No. 12/2017-CT (Rate) dated July 28, 2017.
“The applicant has submitted the copy of Tax Invoice No. 230/2018-19 dated 04.07.2018 issued to M/s. Sardar Sarovar Nigam Limited for charging the fees of “Maintenance Of Account”, wherein they have charged CGST @9% and SGST @ 9% i.e. total GST was charged at the rate of 18%,” the AAR observed.
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