Case Law Details
In re NBCC (India) Limited (GST AAR Odisha)
Questions Asked
a) The Authority for Advance Ruling vide its Order No 07/ODISHA-AAR/2020-21 dated 09.03.2021 held that Steel Authority of India Ltd. (SAIL) is a Government Entity and the construction work of ISPAT POST- GRADUATE MEDICAL INSTITUTE AND SUPER SPECIALIY HOSPITAL, at Rourkela is a work entrusted by Central Government; to SAIL, therefore M/s URC Construction (P) Ltd. executing the work under the Letter of Award between the Applicant and M/s I IRC Construction (P) Ltd. is leviable to a tax rate@6% each on Central GST and SGST. Therefore, the Applicant being the Principal Contractor, whether the tax rate applicable to value of contract between the Applicant and M/s SAIL is also leviable at 12% [CGST @ 6% + SGST @ 6%] in terms of Entry no 3(vi) (a)or (b) of Notification No. 11/2017-Centra! Tax (Rate), dated 28-6-2017?
b) Where the lax rate is determined at 12 % applicable to the value of works contract services provided by the Applicant to M/s SAIL, whether the rate of taxes so determined would be applicable to the entire value of the works contract covered by Memorandum of understanding dated 13.08.2018?
c) As the Applicant has till date of the ruling have paid 18% of tax on its Tax invoices raised to M/s SAIL pertaining to the underlying subject contract, whether the taxes to the extent of 6 % (18% paid- 12% as per order) becomes taxes paid over and above the liability to pay as tax and can be regarded as tax in excess?
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