Company A is in the Business of recycling the last stage un recyclable plastic ( environmental solution)
Company A is not an NGO/ Trust. Its " for profit making" company.
Its putting up a Project - Plant and Machinery
Company B pays 20l to Company A under its CSR - as Viability Gap Funding to bridge the gap in Capital expenses ( as good as a donation from Company B to Company A)
No services rendered by Company A to Company B. Only obligation for Company A is to Complete and run the Project for a period of 15 years.
Question? Whether this VGF paid by Company B to Company A is liable to GST. If so what is the rate of tax ?
CAclubindia
