Notification No 23/2018 Union Territory Tax (Rate)

Seeks to insert explanation in an entry in notification No. 12/2017 – Union Territory Tax (Rate) by exercising powers conferred under section 8(3) of UTGST Act, 2017.

Exemption to One time upfront amount by State Government Industrial Development Corporations or Undertakings to industrial units-Explanation

The CBIC vide Notification No.12/2017- Union Territory Tax (Rate), dated the 28th June, 2017 had exempted the intra-State supply of services of “One time upfront amount (called as premium, salami, cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (thirty years, or more) lease of industrial plots, provided by the State Government Industrial Development Corporations or Undertakings to industrial units”

Now, the CBIC has issued another Notification No. 23/2018-Union Territory Tax (Rate) dated 20th September, 2018 modified the said notification by inserting an Explanation which provides that as a condition of this exemption, the Central Government, State Government or Union territory must have 50 per cent. or more ownership in the entity directly or through an entity which is wholly owned by the Central Government, State Government or Union territory.

Read Notification No 23/2018 Union Territory Tax (Rate)

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)

Notification No. 23/2018-Union Territory Tax (Rate)

New Delhi, the 20 th September, 2018

G.S.R……(E).- In exercise of the powers conferred by sub-section (3) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.12/2017- Union Territory Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), vide number G.S.R. 703(E), dated the 28th June, 2017, hereby inserts the following Explanation in the said notification, in the Table, against serial number 41, in column (3), namely:-

“Explanation.- For the purpose of this exemption, the Central Government, State Government or Union territory shall have 50 per cent. or more ownership in the entity directly or through an entity which is wholly owned by the Central Government, State Government or Union territory.”.

[F. No.354/300/2018-TRU]
(Mohit Tewari)
Under Secretary to the Government of India

Note: -The principal notification No. 12/2017 – Union Territory Tax(Rate) was published in the Gazette of India, Extraordinary, dated the 28th June, 2017, vide number G.S.R. 703 (E), dated the 28th June, 2017 and was last amended by notification No. 14/2018- Union Territory Tax (Rate), dated the 26th July, 2018 vide number G.S.R. 688 (E), dated the 26 th July, 2018.

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