The Karnataka Authority of Advance Ruling (AAR) ruled that the incomes received towards salary or remuneration as a Non- Executive Director of a private limited company, renting of commercial property, renting of residential property and the values of amounts extended as deposits or loans or advances out of which interest is being received are to be included in the aggregate turnover, for registration. The income received from renting of residential property is to be included in the aggregate turnover, though it is an exempted supply.
The applicant, M/s Anil Kumar Agarwal is an unregistered person and is in receipt of various types of income or revenue such as partner’s salary, salary as director from Private Limited company, interest income on partners fixed capital credited to partner’s capital account, interest income on partners variable capital credited to partner’s capital account, interest received on loan given, Interest received on advance given, interest accumulated along with a deposit or fixed deposit, interest income received on deposit/ fixed deposit, interest received on Debentures, interest accumulated on debentures, interest on Post office deposits, interest income on National Savings Certificate (NSC), interest income on PPF account, interest income on National Pension Scheme (NPS), etc.
The applicant sought advance ruling on the issues that out of the source of income or revenue which all revenue income shall be considered for aggregate turnover for registration and out of nature of income or revenue when the supply even if exempted needs to be considered.
The authority consisting of the members Dr. Ravi Prasad and Mashhood ur Rehman Farooqui ruled that the incomes received towards salary or remuneration as a Non- Executive Director of a private limited company, renting of commercial property, renting of residential property and the values of amounts extended as deposits or loans or advances out of which interest is being received are to be included in the aggregate turnover, for registration.
“The income received from renting of residential property is to be included in the aggregate turnover, though it is an exempted supply,” the authority said.
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