There is bewilderment between which supply has to be treated as the supply of services and which to be treated as supply of goods (covered in previous article) and in midst of them there are the activities which shall neither be treated as supply of goods nor as supply of services. This article is about the activities or transaction which shall neither be treated as supply of goods nor as supply of services.
1. Services by an employee to the employer in the course of or in relation to his employment.
2. Services by any court* or Tribunal established under any law for the time being in force.
* Court includes District Court, High Court and Supreme Court.
3. (a) The functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities;
(b) The duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or
(c) The duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, (covered in previous Article) sale of building.
6. Actionable claims*, other than lottery, betting and gambling.
*Actionable claim is a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in possession either actual or constructive, of the claimant, which the civil courts recognize as affording grounds of relief whether such debt or beneficial interest be existent, accruing or conditional or contingent.
The author can also be reached at Rishu.dham@gmail.com
CAclubindia
