GST
TRT-2025-
AAR Gujarat
Date:-16-04-24
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 16 April 2024
Facts –
- The Applicant, M/s Abans Alterative Fund Manager LLP, a SEZ Unit, is engaged in providing the services of holding securities and other assets of trusts and funds and similar financial entities.
- The applicant has availed the service from Advocate towards execution of lease agreement for premise in GIFT City, Gandhinagar. The applicant is the fund manager of Abans Investment trust.
Issue –
- Whether the applicant is required to pay tax under reverse charge mechanism on services received from advocate?
Order –
- The AAR observed that under notification No. 37/2017-CT, a unit in DTA can supply services to a unit in SEZ without payment of IGST subject to furnishing of LUT to the jurisdictional Commissioner.
- Hence, the applicant, an SEZ unit, can procure the legal services, sponsorship services etc., for use in authorized operations without payment of IGST provided the applicant, furnishes a LUT or bond as specified in condition (i) of para 1 of notification No. 31/2017-CT.
- Thus, it was ruled that the applicant, an SEZ unit, is not required to pay GST under RCM on specified services in accordance with notification No. 10/2017-IT(Rate) dated 28.6.2017 as amended from time to time, subject to furnishing a LUT or bond as specified in condition (i) of para 1 of notification No. 37/2017-CT.
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