09/2019 dated 18th July 2019, it was held that the amounts payable to DMF and NMET are nothing but a part of royalty itself and hence GST needs to be discharged under RCM on the same. %���� The Engineering Info Section provides all sorts of information for Contractors, Consultants, Engineers, Students, Builders and new things in Construction field. Cost of the materials are inclusive of … The service of allowing the extraction of minerals, provided by the government to a business entity for which certain amount is paid as royalty to the state government, will be treated as a taxable supply and GST needs to be paid on the same under reverse charge mechanism by the business entity as a service recipient at the rate applicable on the minerals extracted. 13. As per the above definition of supply, seigniorage charges will be treated as supply as it is the right given in return of consideration in the form of charges collected. Asking the collectors to take special interest in the project, the Minister said the Government has done away with seigniorage charges on sand and would ensure supply of cement at much reduced rate of Rs 230 per bag. For 0.36 = 0.36x 1600 = 576Kgs. %PDF-1.4 17-02-2016: 4: GO.Ms.No.67: Minor Minerals: Mines and Minerals – Revision of Rates of Seigniorage Fee and Dead Rent - Orders – Issued. Seigniorage is the difference between the value of currency/money and the cost of producing it. 480.00 Sand (including 5% wastage) cum 1.05 Seigniorage charges for sand cum 1.05 B. 50/33 (Rupees Fifty /Thirty Three) 3 Road Metal & … Amount of Sand required for mortar: Similarly as Cement, Sand is calculated in terms of m 3. Payment of Seigniorage Fee:The Allottee shall pay Seigniorage Fee in advance before dispatch of sand from the specified sand bearing area to the authorized stockyard as per the prevailing scheduled rates or revised from time to time in the Zilla Parishad General Funds and furnish challan to the Asst. MACHINERY - Nil --C. LABOUR: Man mazdoor for mixing mortar day 0.20 Grand Total BLD-CSTN-1-5 5 Cement Mortar (1 : 4) Unit : 1cum A. complete but excluding cost of reinforcement and fabrication charges as per drawing and technical specifications as per IS - 2911 ( Part-I Section II ) -1979 for finished item of work. Penalty.- The aforesaid view is also strengthened by the Advance Ruling pronouncements in case of –. MACHINERY - Nil - - - C. LABOUR: Man mazdoor for mixing mortar day 0.20 Grand Total MATERIALS: Cement kg. In order to submit a comment to this post, please write this code along with your comment: 07ccf820667548f1d21de3d5fd888b4d. Entry no. Seigniorage Charges - Important short notes question Seigniorage Charges. For example, if the royalty/seigniorage charges are paid for extraction of sand, then the GST rate applicable on the sand shall be considered for discharging GST on the royalty amount/seigniorage charges. Hence, DMF and NMET charges cannot be said to be composite supply of royalty services. In such a case, if the challan under which the seigniorage charges are paid to the government is in the name of the sub-contractor, then it will be deemed that it is the sub-contractor who has received services from the government and GST shall be paid under RCM by the sub-contractor on such seigniorage charges deducted by the main contractor from the invoice amount. The current CoinMarketCap ranking is #476, with a market cap of $16,945,127 USD. The Government of Tamilnadu by issuing a notification under Section 15 of the Mines and Minerals (Regulation & Development) Act, 1957 (hereinafter referred to as 1957 Act), increased the seigniorage fee (which is synonymous with Royalty charges in other States) on stone, sand and earth to the tune of nearly 30% with effect from 1st November, 2002, i.e. 2 0 obj<>stream This info is very useful for those who are in both Govt and Private sectors. All the materials cost are inclusive of seigniorage charges as per prevailing rates of seigniorage. or Description: It can also be termed as a source of revenue for governments as the value of money printed is generally higher than the cost of producing it. 9C of the Mines and Minerals (Development & Regulation) Act, 1957, NMET (National Mineral Exploration Trust) is a trust which is formed by the central government which will use the funds accrued to the trust for the purpose of regional and detailed exploration. NMDC Limited – Order No. 360.00 Sand (including 5% wastage) cum 1.05 Seigniorage charges for sand cum 1.05 B. 7 of CGST Act, 2017, “Supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business”. with Gravel 70% and Sand 30% brought from approved quarry including cost and conveyance of gravel and sand and all labour charges for sectioning, ramming, watering etc. 2. As per Entry No. Para 4 of the Notification states that the DMF shall be a body corporate which shall also be a non-profit making Trust. ü Fixed by the State Government. 50/33 (Rupees Fifty /Thirty Three) 2 Rough Stone/Boulders M3/MT Rs. DMF and NMET are paid to separate funds having different objectives altogether from that of royalty. H��WMs���W��- ��o�d��*��]���MR"��);�G�{ӯ�1�>�C�j+v�8 �F�����w7���N�LON��h��ޞtyW׵���&�����U�E3}89���f�cov�͉�}����O2|����'�΅*���D���.�yg�]�7��#������)Ɲ5.1��$�ʚs�&��ϲS���3c|^[Uy���l�ߧ9���ץ�BCݙ�&�a����������b��8y;=�M�G�4N�MU���U�u��'���s?E�ۖ�y?yh���,�u�������|��xfXd_���e!����1!o�f�ڼ�;W[�iF\�]��o�3�k��ě�M�Ć�I@�7��Ó���!I_[r1m=�]�?�sd�7����t��Bd7shIG�d Ӓ#��c2�p�H� ������{�T��H/Ʈ�vd�]��#)�vN�k�Pzj:��� ��5�˭�{i��̓�i���Tžl+yV��NNܤ�6�ׅ���.G��aԳ���+��ab�٪?o� :����� G.O.Ms.No.100, Dated 31.10.2015 : GST has always been confusing for the mining industry with its never-ending changes in GST rates for the infra works, subcontracted works with many conditions attached to it. calculation of seigniorage charges = Total Sand Quantity in Cum X 46 % X Rs 50/- + Total Coarse Aggregate Quantity in Cum X 92 % X RS 75. Then at the time of making payment to the sub-contractor, the main contractor will deduct certain charges towards seigniorage charges i.e., payment calculations will be made as follows-, Rs. cement: 3 sand : 6 metal) proportion for foundation and under flooring using 40 mm size hard granite metal from approved quarry including cost and conveyance of all materials like cement , sand , coarse aggregate , water , seigniorage charges, shuttering and labour charges to required level , curing etc. When we talk about the mining industry, there are certain terms that are very common in the mining industry like seigniorage charges (royalty), DMF (District Mineral Foundation) and NMET (National Mineral Exploration Trust). Director of Mines & Geology for obtaining waybills. RATES OF SEIGNIORAGE FEE [P.T.O.] 13/2017-Central Tax (rate), GST on services supplied by central govt, state govt or local authority, to a business entity needs to be paid by such business entity under RCM. All Rights Reserved. Sl.No. Join our newsletter to stay updated on Taxation and Corporate Law. 2 Seigniorage Charges:- The new seigniorages charges as fixed by the Industries and commerce (M.I) Department for all the materials are come into force with effect from 01-11-2015 Single time penalty for sand:- The sand consumed in all Government works by the contractors, normal seigniorage Fee with one time For example, if the invoice raised by the sub-contractor to the main contractor is for Rs. Your email address will not be published. ,conveyance, seigniorage charges, loading, unloading and stacking to departmental gauge for pre measurements 12. 110 (Rupees one hundred and ten) 4 Lime kankar/Limestone MT It is essentially the profit earned by the government by printing currency. As a general industry practice in the case of mining, if any work is subcontracted by the main contractor, then the seigniorage charges paid by the main contractor to the state government will be recovered from the sub-contractor by way of deduction from the invoice amount. Cum 3616.00 100-4 As per entry No. complete for finished item of work. >~G����F�V��URm�"6��gK�i�˪A,&�������L?��U���+R�S��EՐ_���&��;���%�l�4�����A�x�E�i*yQ�P��f���}�9|��A�bw�������!A����W����-c���P���~W.4���S��d.81�%�Lt���f��������u�I���g�W�ֱ��x~==(��d���. (xv) Rock sand is a good alternative to natural sand. (Sand), coarse aggregate, water etc., to site and cost of seigniorage charges on all materials ,laying concrete, curing ,all incidental charges : labour charges etc. Seigniorage charges for sand cum 1.05 B. complete including Seigniorage charges, other taxes on all materials complete for finished item of work as per GFC drawings issued by the Employer. Hence, the GST on the contributions made to the trusts shall be paid by the trusts under forward charge. 9) Whether GST needs to be paid under RCM on DMF and NMET? Payment of Seigniorage Fee: The Allottee shall pay Seigniorage Fee in advance before dispatch of sand from the specified sand bearing area to the authorized stockyard as per the prevailing scheduled rates or revised from time to time in the Zilla Parishad General Funds and furnish challan to the Asst. 2(69) of CGST Act, 2017, defines local authority. Mines and Minerals – Revision of Rates of Seigniorage Fee and Dead Rent – Amendment Orders – Issued. As per entry No. Now, let us examine whether the trust (DMF/NEMT) formed can be called as a local authority. 80% of the cost of materials supplied shall be paid directly to the bank account of the Firm/Company using e-Fund Management System WITHIN ONE WEEK after supply of material bills/invoice. As per Sec. Notwithstanding anything contained in the Act or in any other rule, the District Collector charge simple interest at the rate of twenty four per cent per annum on the component on the royalty / seigniorage fee which the lessee has failed to remit within the period. ,conveyance, seigniorage charges, loading, unloading and stacking to departmental gauge for pre measurements 12. Further, the local fund which is being referred to in the above clause, should be under the control of the municipal body and hence, as DMF and NMET are not municipal bodies they cannot be termed as local authorities. The Napa Slabs are also being used in construction as floor tiles by poor 11/2017 – Central Tax (rate) dated 28th June 2017, for the transfer of the right to use any goods for any purpose, the GST rate as is applicable for the supply of like goods involving a transfer of title in goods shall be charged. Designed to help the candidates appearing the Appendix 3, LDCE, 70% etc of Railway Accounts 4) Who is required to pay GST on the seigniorage charges? 1,00,000 + 12% GST. This info is very useful for those who are in both Govt and Private sectors. 1,00,000 + 12% GST. However, in this case, though the royalty, DMF and NMET is paid together, it is not paid to a single fund. complete 48.00 1.20 0.10 10 Flooring with Shahabad /Tandur Rough Stone slabs of all … All the information available in the Engineering Info section is provided by a team of civil engineers with more than 30 plus years of field … labour charges etc., complete for finished items of work. Cum 2 All the materials cost are inclusive of seigniorage charges as per prevailing rates of seigniorage. royalty amount- 100000 (this amount rcm paid ) complete including Seigniorage charges, other taxes on all materials complete for finished item of work as per GFC drawings issued by the Employer. 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Penalty.- Director of Mines & Geology for obtaining waybills. The new sand policy is to ensure adequate quantity of the right quality of sand is available at a reasonable price to the people MATERIALS: Cement kg. As per Mines and Minerals (Development and Regulation) Act, 1957 – the government may permit the contractors to carry on quarrying operations on payment of seigniorage charges – i.e.., the contractors will be given the right to use the minerals including its extraction and exploration upon payment of certain charges to the government in the name of seigniorage charges. 5 of Notification No. However, the said view is not justifiable as the amount is not collected by the government, but is going to a specific trust which is formed for a specific purpose. Further, as per the sectoral FAQs issued by CBIC in case of government services, the activity of assignment of any right for exploration of natural resources will be treated as a supply of services. The fund comprises among others, contribution collected or to be collected from the holders of the Mineral or Minor Mineral Concessions in the District at such percentage of the royalty as may be prescribed by the Central Government under the Mines and Minerals (Contribution to the District Mineral Foundation) Rules, 2015. About Seigniorage Shares. and conveyance of all materials like cement, sand, coarse aggregate, water etc. In terms of Kgs, Density of Sand = 1600Kgs/m 3. The activities undertaken by the trust for the welfare of the affected families can be treated as vocation and thereby it satisfies the definition of the term business and the amount received by the trust can be called as consideration as the person who is receiving the supplies and the person who is paying the amount of consideration need not be same under GST. Seigniorage Shares price today is $0.832853 USD with a 24-hour trading volume of $1,048,970 USD. Further, a representation can be made to the GST council for the clarity required in this regard. One school of thought here is that the DMF and NMET which are formed by the government having separate legal existence, having powers to control and manage the funds collected will fit into the above clause and hence will be considered as a local authority. Furnish GSTR-1 in time, or pay late fees, Webinar on Career Growth in GST related Litigation Management, Extend timelines for filings by LLPs: ICSI, Goods and Service Tax (GST) Registration & Requirements, Uttarakhand HC directs CBDT to consider representation on due date extension, All India Protest Call against GST/Income Tax Issues by WMTPA. ü Are reference to excavating earth moorum, sand and other minerals. For example, if the invoice raised by the sub-contractor to the main contractor is for Rs. 30% and however, in certain minerals like Napa Slabs / Sand or such minerals, which are consumed by poor people, need to be reconsidered in terms of Seigniorage Fee/ District Mineral Fund as the sand is being imposed zero Seigniorage Fee and District Mineral Fund. Any person liable to pay royalty towards the exploration of minerals shall pay 2% of the royalty amount to NMET. 13/2017 – Central Tax (Rate) dated 28th June 2017, on services supplied by the central government, state government, union territory or local authority to a business entity, GST shall be paid by the business entity as a service recipient. In terms of Kgs, Density of Sand = 1600Kgs/m 3. In this article, an attempt is made to understand the GST implications on seigniorage charges, DMF and NMET. Cement, Sand, Bricks, Water, etc., to site cost of Seigniorage charges on all materials, including all labour charges like mixing Cement Mortor, scaffoding charges lift charges , curing charges etc., complete for finished item of work 48.00 0.23 0.90 wall on back side Basement 2 Seigniorage Charges:- The new seigniorages charges as fixed by the Industries and commerce (M.I) Department for all the materials are come into force with effect from 01-11-2015 Single time penalty for sand:- The sand consumed in all Government works by the contractors, normal seigniorage … This info is very useful for those who are in both Govt and Private sectors. As per Sec. Another school of thought is that the  District Mineral Foundation has been constituted under Notification No C1 207 MMN 2015 (P-1) dated 11.1.2015. MACHINERY - Nil --C. LABOUR: Man mazdoor for mixing mortar day 0.20 Grand Total BLD-CSTN-1-4 4 Cement Mortar (1 : 3) Unit : 1cum A. Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. 16. C. PAYMENT TERMS: 1. Seigniorage is the difference between the value of currency/money and the cost of producing it. 5 of Notification No. Seigniorage Charges - Important short notes question Seigniorage Charges. 8) Can it be treated as a composite supply of royalty? to site, including seigniorage charges, sales & other taxes on all materials and including all charges for machine mixing, laying concrete in foundations ramming in 15 cm layers finishing top surface to the required level curing etc., complete for finished item of work. Required fields are marked *, Notice: it seems you have Javascript disabled your... Sand cum 1.05 seigniorage charges trusts shall be paid by the trust satisfies the definition supply. Complete for finished item of work as per the situation/demand warrants write this code along with comment. 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