Description

Related Information

Order dated 08/11/2018

Issue: Whether the following ancillary services provided by it are exempt:-
-- Transfer Fees: Fees charged for the purpose of transfer of Industrial Plot from one person to another.
-- Extension Fees: Fees charged for delay in the commencement of construction and production.
-- Conversion Fees: Fees charged for the conversion of leasehold plot into freehold.
-- Processing Fees: Fees charged for the purpose of transfer of Industrial Plots within the family, change in constitution of ownership/shareholding pattern permission for sale of freehold plot.
-- Bifurcation Fees: Fees charged for the permission to sub divide the industrial plot in to 2 or more numbers.
-- Tower Charges: Fees charged from the plot-holder for the permission to install Telecommunication Tower on the Industrial plots.
 

Crux: The ancillary services provided along with lease of Industrial Plots against one time upfront amount are taxable services in terms of sub-section (21) of section 2 read with section 9 of the CGST Act, 2017. The services are not specifically exempted in terms of Notifications issued under section 11 of the CGST Act, 2017. For the purpose of charging the tax, the services are covered under Other Miscellaneous services� with CGST rate of 9% as provided at Sr. No. 35 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) with equal rate (9%) of UTGST as per entry no. 35 in Notification No. 11/2017-Union Territory Tax (Rate) dated 28.06.2017 (as amended).

Order

Summary