UNDERSTANDING PLACE OF SUPPLY-2

The basic principles of Place of Supply of services when the location of supplier or the location of recipient is outside India, has been drawn largely from the Place of Provision of Services Rules, 2012 (POPS) under erstwhile service tax regime. It has also been mentioned that in order to prevent double taxation or non-taxation of the supply of a service, or for the uniform application of rules, the Central Government shall have the power to notify any description of service or circumstances in which the place of supply shall be the place of effective use and enjoyment of service.

Nature of Transaction	Place of Supply of Goods
Place of supply of services except below mentioned cases	Location of the recipient of service
Services in respect of Goods which are required to be made physically available If the services performed from remote location by electronic means Services to Individual which require physical presence of such person	Where the services are actually performed Location where the goods are located at the time of supply of services Where the services are actually performed
Services in relation to immovable property including ancillary services Lodging accommodation by hotel, inn, club, guest house etc. Grant of right to use immovable property	Where the Immovable property is located or intended to be located
Admission to any event Eg: Cultural, educational, entertainment, artistic, sport etc.	Location where the event is actually held
Services referred to above cases is supplied in more than one location including Taxable territory Services referred to above cases is supplied in more than one state or UT	Location in the taxable territory Location of each of the respective state or UT and value of services shall be on proportionate basis
Services by Banks, financial institutions and NBFC’s to A/s holders Intermediary services Hiring of means of transport up to one month excluding aircrafts, vessels	Location of supplier of service
Services by way transportation of goods other than by way of mail or courier	Place of destination of such goods
Passenger transportation services	Place where the passenger embarks on the conveyance for continuous journey
Services on board conveyance such as vessel, aircraft, motor car, and train in during transportation	Location of first scheduled point of departure for the journey

Leave a Reply Cancel reply