Once it is distinctly clear that the supply is of ‘water’ only, and NOT purified water, the same falling under the entry 99 of the notification no. 02/2017-CT (R) is qualified for the exemption.
Appellate Authority for Advance Ruling —- Taxability on activities such as Sale of water, Sewerage treatment charges etc. – The appellant sought Advance Ruling as to whether the activities of sale water, Sewage treatment charges, Consultancy Services such Detailed Project Report (DPR), Project Management Consultancy (PMC) and any other infrastructure related consultancy is taxable or exempt; Incidental to main business activities such as Interest on receivable on delayed payments; Disconnection Charges; Reconnection charges; Permanent disconnection charges; Cheque Bouncing charges are to be considered as part of the main activities. The AAR held that the applicant not being the class of persons specified in Notification No. 14/2017-CTR dated 28.06.2017 as amended, they are not eligible for the said Notification. The activity of Sewage offtake and treatment extended to Tirupur Municipal Corporation is exempt under SI.No.3 of Notification No. 12/2017- CTR dated 28.06.2017. The Consultancy Services rendered by the applicant to Tiruppur City Municipal Corporation in respect of the Project- Construction Management and Supervision Consulting Service are exempt under SI.No.3 of Notification No. 12/2017-CTR dated 28.06.2017. Interest on receivable on delayed payments, Cheque Bouncing Charges being charges received for ‘Agreeing to tolerate an act’ classifiable under SAC 999794 is taxable @18%. Connection/ Reconnection/ Disconnection/ Permanent Disconnection Charges are charges received for the services of ‘Water Distribution Services’ classifiable under SAC 9969 and is taxable @18%. Being aggrieved the appellant filed present appeal. The authority concurred with the reasoning and the ruling given by the AAR and found that the appeal is not sustainable..
Held that:- The Hon’ble Appellate Authority for Advance Ruling dismissed the appeal.
Once it is distinctly clear that the supply is of ‘water’ only, and NOT purified water, the same falling under the entry 99 of the notification no. 02/2017-CT (R) is qualified for the exemption.
Appellate Authority for Advance Ruling —- Taxability on activities such as Sale of water, Sewerage treatment charges etc. – The appellant sought Advance Ruling as to whether the activities of sale water, Sewage treatment charges, Consultancy Services such Detailed Project Report (DPR), Project Management Consultancy (PMC) and any other infrastructure related consultancy is taxable or exempt; Incidental to main business activities such as Interest on receivable on delayed payments; Disconnection Charges; Reconnection charges; Permanent disconnection charges; Cheque Bouncing charges are to be considered as part of the main activities. The AAR held that the applicant not being the class of persons specified in Notification No. 14/2017-CTR dated 28.06.2017 as amended, they are not eligible for the said Notification. The activity of Sewage offtake and treatment extended to Tirupur Municipal Corporation is exempt under SI.No.3 of Notification No. 12/2017- CTR dated 28.06.2017. The Consultancy Services rendered by the applicant to Tiruppur City Municipal Corporation in respect of the Project- Construction Management and Supervision Consulting Service are exempt under SI.No.3 of Notification No. 12/2017-CTR dated 28.06.2017. Interest on receivable on delayed payments, Cheque Bouncing Charges being charges received for ‘Agreeing to tolerate an act’ classifiable under SAC 999794 is taxable @18%. Connection/ Reconnection/ Disconnection/ Permanent Disconnection Charges are charges received for the services of ‘Water Distribution Services’ classifiable under SAC 9969 and is taxable @18%. Being aggrieved the appellant filed present appeal. The authority concurred with the reasoning and the ruling given by the AAR and found that the appeal is not sustainable..
Held that:- The Hon’ble Appellate Authority for Advance Ruling dismissed the appeal.