Page 113 - CA Final GST

Badlani Classes

(iii) wheresuchinternetsubscriberfiguresrelatetoaregion
comprisingofmorethanoneStateorUnionterritory,thesubscriberfigures for a
State orUnion territoryof thatregion, shallbe calculatedby applyingthe
ratioofthepopulationsofthatStateorUnionterritory,asdeterminedinthe latest
census, to such subscriber figures;
(iv) theratioofthesubscriberfiguresforeachStateorUnionterritory
assocalculated,whenappliedtotheamountpayableforthisservice,shall
representtheportionofthevalueattributabletothedisseminationinthatState or
Union territory.

Illustration:ABCissuesareleaseordertoWXforacampaignover
internetregardinglinkingAadhaarwithone’sbankaccountandmobile
number.WXrunsthiscampaignovercertainwebsites.Inordertoascertain
thestatewisebreakupofthevalueofthisservicewhichistobereflectedinthe
invoiceissuedbyWXtoABC,WXhastofirstrefertotheTelecomRegulatory

AuthorityofIndiafiguresforquarterendingMarch,2017,asindicatedon
theirwebsitewww.trai.gov.in.Thesefiguresshowtheserviceareawise
internetsubscribers.Therearetwentytwoserviceareas.Somerelateto
individualStatessometotwoormoreStatesandsometopartofoneState and
anothercompleteState.Someoftheseareasaremetropolitanareas.Inorder
tocalculatetheStatewisebreakup,firsttheStatewisebreakupofthenumber
ofinternetsubscribersisarrivedat.(Incasefiguresofinternetsubscribersof
oneormoreStatesareclubbed,thesubscribersineachStateistobearrived
atbyapplyingtheratiooftherespectivepopulationsoftheseStatesasperthe
latestcensus.).OncetheactualnumberofsubscribersforeachStatehasbeen
determined,thesecondstepforWXinvolvescalculatingtheStatewiseratioof
internetsubscribers.Letusassumethatthisworksoutto8:1:2…andsoon
forAndhraPradesh,ArunachalPradesh,Assam…..andsoon.Thethirdstep
forWXwillbetoapplytheseratiostothetotalamountpayabletoWXsoasto
arriveatthevalueattributabletoeachState.Separateinvoiceswillhavetobe
issuedStatewiseandUnionterritorywisebyWXtoABCindicatingthevalue
pertaining to that State or Union territory.

(i) inthecaseofadvertisementsthroughshortmessagingservicetheamount
attributabletothevalueofadvertisementservicedisseminatedinaStateorUnion
territoryshallbecalculatedonthebasisofthetelecommunication(hereinafter
referredtoastelecom)subscribersinsuchStateorUnionterritory,whichinturn, shall
be calculated in the following manner, namely:-
(a) thenumberoftelecomsubscribersinatelecomcircleshallbeascertained
fromthefigurespublishedbytheTelecomRegulatoryAuthorityofIndiaonits
website www.trai.gov.in ;
(b) thefigurespublishedforagivenquarter,shallbeusedforcalculating
subscribersforthesucceedingquarterandatthebeginning,thefiguresforthe
quarter1 July,2017to30 September,2017shallbeusedforthesucceeding
th
st
st
quarter 1 October, 2017 to 31 December, 2017;
st
(c) wheresuchfiguresrelatetoatelecomcirclecomprisingofmorethanone
State,orUnionterritory,thesubscriberfiguresforthatStateorUnionterritory
shallbecalculatedbyapplyingtheratioofthepopulationsofthatStateorUnion
territory, as determined in the latest census, to such subscriber figures.

Illustration-
1:InthecaseofthetelecomcircleofAssam,theamountattributedtothetelecomcircleo Page112
fAssamisthevalueofadvertisementservicein Assam.

Central Goods & Services Tax Act, 2017