Page 162 - GSTL_26th March 2020_Vol 34_Part 4

672 GST LAW TIMES [ Vol. 34
from the employees manufacturing final products, various managerial service
employees also carry out their day to day affairs from the said factories. The said
factories of the M/s. YKK are situated at remote location in Haryana where pub-
lic transport is very minimal which hinders transportation of employees to reach
the factories.
4. In order to carry out its business of supply of its final product and
for efficient functioning of its business as a whole, M/s. YKK has engaged vari-
ous contractual service providers who provide transportation services and en-
sure that employees of YKK are able to reach the factories in time for doing their
day to day work as scheduled. It is for this purpose that M/s. YKK enters into
contracts with the said suppliers for hiring buses as well as cars. M/s. YKK sub-
mitted a copy of the contract with M/s. Deep Travels (Deep), as a sample con-
tract in support of its argument. Since this contract is with specific Contractor,
namely, Deep, this contract may be considered as the prototype of all contracts
made with various contractors and all discussions regarding the Agreement are
to be taken as relevant to and applicable for all the contracts entered into by the
appellant with various contractors for provision of Transportation Services to its
employees. The terms of the contract is summarized as under :
(a) The Contractor shall provide transport services to employees of the
appellant from factories to Kakarwali, Rewari by way of buses.
(b) The Contractor shall deploy trained personnel viz. driver and help-
er buses to provide transportation services to employees of YKK
from factories to Kakarwali, Rewari. The said driver and helper
shall be employees of the Contractor and remain under supervision
and control of the contractor.
(c) M/s. YKK shall inter alia pay a monthly fee of Rs. 1,48,000/- and
applicable tax to the contractor for provision of Input Service.
(d) The Contractor shall provide point to point Transportation Services
to employees of M/s. YKK by ensuring that driver only takes routes
approved by M/s. YKK. Any alteration in the transportation ser-
vices by M/s. YKK shall requires that M/s. YKK gives prior infor-
mation to Contractor about the alteration.
5. In furtherance of the said contract/agreement, the Contractor raise
invoices on the appellant on the basis of usage i.e. running of the buses or cars on
monthly payments for specified routes of such buses or cars, as the case may be.
The invoices are raised on M/s. YKK along with applicable Goods and Services
Tax (GST in short) which comprises Central GST and Haiyana GST by classifying
the activities under HSN 9964 13 viz Non-scheduled local bus and coach charter
services, attracting GST at the rate of 18%.
6. The question for advance ruling for consideration was :
(i) Whether the applicant (YKK) is eligible to take input tax credit on :
(a) GST charged by the Contractor for hiring of buses for trans-
portation of employees?
(b) GST charged by the Contractor for hiring of cars for transpor-
tation of employees?
(ii) Whether the restriction on “Rent a Cab” service specified in Section
17(5)(b)(iii) is applicable to input tax credit on :
(a) GST charged by the Contractor for hiring of buses for trans-
portation of employees?
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