2021-TIOL-140-AAR-GST

Wave Colour Techniks

GST - Machineries viz. Automatic Feeder with Breaker, Drying machine, Cleaning and Grading Machine, and Pre-stem remover manufactured and sold to farmers and farmer clusters are taxable @12% GST: AAR GST - Automatic Weighing Machine is liable to tax @18%: AAR

- Application disposed of: AAR

2021-TIOL-139-AAR-GST

Udupi Nirmiti Kendra

GST - Applicant is a trust and is involved in executing civil works contract - They have sought advance ruling in respect of the following question viz.  Interpretation of the term "a contract" for TDS applicability under section 51 of the GST Act - In the absence of any contract, or contract of continuous supply, whether TDS provisions under section 51 is applicable for every supply of goods and services? Or whether the single tax invoice shall be considered as "a contract" or aggregate value of purchase from a vendor for the whole year be considered as a contract? - Applicant states that the TDS provisions are required to be interpreted differently for each of scenarios as under:- 1. Value of supply exceeds the limit, but there is no existence of "a contract". However, tax invoice itself shall be considered as "a contract" and TDS shall be applied. 2. Value of total supply during the year exceeds the limit, but there is no existence of "a contract". Each tax invoice shall be considered as "a contract" and value of such supply under "a contract" not exceeds the limit. Annual value of supply from the supplier shall NOT be considered as supply under "a contract". No TDS provisions applicable. 3. Value of total supply under a contract: not exceeded the threshold limit, No TDS provisions applicable 4. Value of total supply under "a contract" exceeds the limit. TDS shall be applied when the aggregate value exceeds Rs.2.50.000/-. 4.5 The applicant states that he is of the opinion that in the absence of "a contract" no TDS is required to be deducted when the value of an invoice is below Rs.2,50,000/-.  Held: Tax deduction at source is applicable to all supplies subject to condition that the value of supply under a contract under scenario no. 3 and 4 and purchase order under scenario no. 2 is more than Rs.2,50,000/- and invoice value is only applicable for scenario no. 1 as the basis for determining the "value of supply" under a contract: AAR

- Application disposed of: AAR