Andhra Pradesh Circular, 2005
-

GOVERNMENT OF ANDHRA PRADESH COMMERCIAL TAXES DEPARTMENT.

PROCEEDINGS OF THE AUTHORITY FOR CLARIFICATION AND ADVANCE RULING

(Under Section 67 of APVAT Act, 2005)

Present :

Sri T. Yugandhar Reddy, Addl.Commissioner(VAT)

Sri T. Vivek, Jt.Commissioner (VAT)

Sri K. Raghavaiah, Jt. Commissioner(Audit)

*****

CCT's Ref.No: PMT/P&L/A.R.Com/181/2005. Dated 18-08-2005.

Ref:- CCT's.Ref.No: PMT/P&L/A.R.Com/2005, Dated 13-04-2005.

O R D E R:

M/s. Kayvee Enterprises, Hyderabad (TIN.28970141976) have filed an application Dated 16-6-2005 and sought clarification and advance ruling on the following items under Section 67 of APVAT Act, 2005 read with Rule 66(2)(i) of APVAT Rules, 2005 along with the application fee of Rs.1,000/-.

They sought clarification on the following:

Whether the following Departments are Government Departments :

1	A.P.State Police Housing Corporation
2	A.P.Health, Medical Housing Corporation (APHMHIDC)
3	J.N.T.University
4	Osmania University
5	A.P.State Irrigation Development Corporation
6	A.P. Tribal Welfare Corporation
7	A.P.State Coop. Bank.

Sri Chandra Sekhara Reddy, Managing Partner appeared for hearing on 5-7-2005 and explained the case.

The issue has been examined with reference to the provisions of the APVAT Act and Rules and the ruling is given as under:

The applicant is a works contractor and seeks clarification whether the above-mentioned Government Corporations and Universities are Government departments.

It is by virtue of the sovereign's prerogative exercised by a charter or of an Act of Parliament or of prescription, that the artificial personage called a 'corporation' is created. The Parliament/Legislature gives it a legal immortality and a name by which it acts and becomes known. The sub section [2(18)] does not encompass corporations, though they are created by Legislature in exercise of sovereign power. Clarifications were issued in the past (under APGST) that Govt. Corporations, Local bodies, Universities are not Government. Hence all corporations solely owned by the AP State Government cannot be considered as Government Departments as per the definition provided under sub-sec.18 of Section 2 of the APVAT Act, 2005.

Universities referred at Sl.Nos. 3 & 4 are autonomous bodies and they are not considered as Government Department. So is, the A.P.State Coop. Bank Ltd., which is a limited company registered under the Companies Act.




Addl.Commissioner	Jt. Commissioner	Jt. Commissioner

NOTE:- An appeal against this proceedings can be filed before the Sales Tax Appellate Tribunal, A.P. Hyderabad within 30 days of this ruling.