GST is leviable on sub-contract received from NBCC to construct building in Maldives: AAAR

  • Blog|News|GST & Customs|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 13 January, 2023

Recent Posts

Blog, News, GST & Customs

Bail Granted Due to Investigation Lapses in Issuing Fake Invoices Under GST | HC

Blog, News, Insolvency and Bankruptcy Code

Delisting of Equity Shares Under Approved Resolution Plan Would Be Governed by IBC; Overrides SEBI Delisting Norms | HC

Latest from Taxmann

Works Contract

Case Details: Appellate Authority for Advance Ruling, Telangana Sri Avantika Contracts (I) Ltd. In re - [2023] 146 taxmann.com 186 (AAAR-TELANGANA)

Judiciary and Counsel Details

    • Neetu Prasad & B.V. Siva Naga Kumari, Member

Facts of the Case

The National Building Construction Corporation (NBCC) was entrusted by Government of India to construct Building in Maldives in terms of MoU signed between two Governments. Thereafter, the applicant was awarded construction sub-contract by NBCC to be supplier of works contract service. It filed an application for advance ruling to determine taxability of work contract services provided by it.

AAAR Held

The Authority for Advance Ruling (AAR) held that NBCC would be the recipient of service and the place of supply shall be the location of recipient. The applicant filed appeal against the order. The Appellate Authority for Advance Ruling observed that NBCC would be the recipient of services as consideration agreed to be paid by NBCC. As per provisions of Section 12(3) of IGST Act, 2017, the place of supply would be location of recipient i.e. Delhi even if location of immovable property is outside India. Therefore, it was held that the sub-contract of works contract services received by the applicant would be taxable under GST.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied