The turnkey project works executed by applicant can be treated as composite supply and consequently the Faculty Quarters, Staff Quarters and Director’s Bungalow shall be entitled for concessional rate.
Classification of service— In the instant case, appellant is aggrieved with decision of advance ruling authority therefore filed this appeal.
The Applicant has been engaged as a Project Management consultancy, for which the Applicant shall be paid agency charges of 5.5% in addition to attract cost of the work. The Authority for Advance Ruling vide para 4.6 of their order, have held that, above PMC service are to be treated as Pure Service & shall not qualify for concessional rate of tax as envisaged under Sl.No.3(vi) to the Notification No. 11/2017-Central Tax (rate) dt.28.06.2017.
In the instant issue, when the Authority for Advance Ruling has allowed the concessional rate of tax to the major part of project under Sl.No.3 of exemption notification no. 11/2017-C.T. (Rate), it is automatically construed that Authority for Advance Ruling has accepted the service as composite supply service.
Held that— In view of the above findings in our view, the works entrusted to M/s. NBCC(India) Ltd. can be treated as composite supply and consequently the Faculty Quarters, Staff Quarters and Director’s Bungalow shall be entitled for concessional rate under Sl.No.3(vi) of the Notification No. 11/2017-C.T. (Rate) dt.28.06.2017 and matching State tax notification issued by the Government of Odisha.
The turnkey project works executed by applicant can be treated as composite supply and consequently the Faculty Quarters, Staff Quarters and Director’s Bungalow shall be entitled for concessional rate.
Classification of service— In the instant case, appellant is aggrieved with decision of advance ruling authority therefore filed this appeal.
The Applicant has been engaged as a Project Management consultancy, for which the Applicant shall be paid agency charges of 5.5% in addition to attract cost of the work. The Authority for Advance Ruling vide para 4.6 of their order, have held that, above PMC service are to be treated as Pure Service & shall not qualify for concessional rate of tax as envisaged under Sl.No.3(vi) to the Notification No. 11/2017-Central Tax (rate) dt.28.06.2017.
In the instant issue, when the Authority for Advance Ruling has allowed the concessional rate of tax to the major part of project under Sl.No.3 of exemption notification no. 11/2017-C.T. (Rate), it is automatically construed that Authority for Advance Ruling has accepted the service as composite supply service.
Held that— In view of the above findings in our view, the works entrusted to M/s. NBCC(India) Ltd. can be treated as composite supply and consequently the Faculty Quarters, Staff Quarters and Director’s Bungalow shall be entitled for concessional rate under Sl.No.3(vi) of the Notification No. 11/2017-C.T. (Rate) dt.28.06.2017 and matching State tax notification issued by the Government of Odisha.