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Vat/service tax in a tender document condition

Dilpreet (Accounts Officer) (52 Points)

02 January 2017

Qualifying Criteria for Applying for the Tender Document for a cafeteria in a college has one of the conditions that parties interested should have registration with VAT/Service Tax. Does that mean either one of the two is required? Please guide.

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184898 Points)
Replied 02 January 2017

The language " should have registration with VAT/Service tax..." means either of them.

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Dilpreet (Accounts Officer) (52 Points)
Replied 02 January 2017

thank you Sir.

Dilpreet (Accounts Officer) (52 Points)
Replied 02 January 2017

Sir,
Otherwise what should be the ideal requirement for such tender document?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184898 Points)
Replied 02 January 2017

It is required as a confirmation of registration with any Governmental agency; so either of them is sufficient. Service tax registration is preferred; but now everything will be submerged to GST.

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Dilpreet (Accounts Officer) (52 Points)
Replied 12 January 2017

Sir, we are yet to apply for service tax registration. Please advise if it is required in IIM as a service receiver. If yes, whether registration for GST would suffice since we are having VAT no.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184898 Points)
Replied 12 January 2017

Only services where RCM is applicable, service tax registration would be required, otherwise no need. For GST migration VAT registration is sufficient. For more details refer: https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=6034

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Dilpreet (Accounts Officer) (52 Points)
Replied 18 January 2017

Sir, Thank you for all your help. Need one more advice. At IIM, we need to apply for registration with Income Tax authorities as educational institution so that we can claim exemption under section 10(23C) (iiiab) of income tax act. Please guide as to how to proceed with this.

Thank you in advance.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184898 Points)
Replied 18 January 2017

As per my understanding, any registration with IT authority not required in your case, as

Approval of the prescribed authority is not required in case of university or educational institutions, if:

They are wholly or substantially financed by the Government [ Sub Clause (iiiab) of Section 10(23C) ]
Aggregate Annual Receipts do not exceed INR 1 Crore [ Sub Clause (iiiad) of Section 10(23C), read with rule 2BC ]

But, from 1.4.1999 onwards, any educational institution existing solely for educational purposes and not for purposes of profit (not falling under (iiiab) or (iiiad)) and approved by the Chief Commissioner or the Director General enjoys exemption under sub-clause (vi). The Central Board of Direct Taxes will authorise a particular Chief Commissioner of Director General for the Region to deal with such applications.

Still I would request to get it confirmed from your auditor/ experts for any latest notifications, and particularly the catagory of the institute IIM as per IT act.

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Dilpreet (Accounts Officer) (52 Points)
Replied 29 May 2017

Sir,

Please confirm if we can consider the mess services provided to college students/hostlers as outdoor catering and do they fall under the preview of WCT. What kind of bill is to supposed to be given by the vendor to the educational institute funded by Govt.? Applicability of VAT / service tax.

Thanks,