Determining the Place of Supply of ‘Specific ‘Services

By Registrationwala

15th May 2017

 

There are particular cases/rules for deciding place of supply for administrations rendered specifically in connection to immovable property, transportation of merchandise and so on. An exact determination of place of supply is vital for organizations.

By law the place of supply of service is legal address or, place of living arrangement of the provider. Even though, the place of supply for various sorts of activities would vary. Generally speaking, the place of supply is where a supply is provided and where GST might be charged and the remuneration is given. Though, deciding the area of supply of services might be troublesome especially in interstate services. In certain cases, the place of supply is dictated by what administration is provided as opposed to where the provider or, the consumer belongs.

Additionally, correct assurance of place of supply will help us in knowing the rate of tax. As though place of supply is resolved as a place outside India, then tax won't need to be paid on that transaction.

Determining the Place Of Supply

GST is goal based tax i.e consumption tax, which implies tax will be exacted where merchandise and ventures are expended and will collect to that state. Under GST, there are three levels of Tax, IGST, CGST and SGST and in light of the ''place of supply'' so decided, the separate tax will be levied. IGST is collected where exchange is between state, and CGST and SGST are exacted where the exchange is intra-state. For understanding Place of Supply for Services the accompanying two ideas are vital in particular:

  • area of the beneficiary of administrations
  • area of the provider of administrations

Determining the place of supply in case of certain specific services.

Immovable Property-

In certain cases, the place of supply is controlled by what administration is provided, as opposed to where the provider or, the client resides

Services of admission to

– Social, artistic, sporting, scientific, educational, or entertainment events or

– Situations such as, fairs, and displays and

– Administrations and auxiliary administrations identified with confirmation are controlled by Place of Service.

Telecommunication

  • Telecommunication Services-supplies of Telecommunication administrations are dealt with as occurring by and large in the place of establishment of the provider.
  • The region where exchanging, interconnection or termination service are given with no human intercession is not considered as place of supply for this service
  • Where an administration is provided is where dealer has his permanent address or resides and so on should be known.
  • Input tax credits to Telecom administrations suppliers –should be additionally special category

Certain Specific Services

For Instance

Manish Caterers in Mumbai, Maharashtra, provides administrations to Mukesh Automobiles for their yearly sales event in Mumbai.

Location of supplier: Mumbai, Maharashtra
Place of supply: The service is held in Mumbai, Maharashtra
Since this is an intrastate supply and the taxes applicable for it are CGST +SGST

For Instance

A Chartered Accountant enrolled in Bangalore, Karnataka, receives an Ayurveda treatment at Dev Ayurveda Centre in Kerala.

Location of supplier: Kerala

Place of supply: The treatment is performed in Kerala

Since this is an intrastate supply and the taxes applicable for it are CGST + SGST

For Instance

Amogya Institute of Fashion Designing in Bangalore, Karnataka, gives fashion designing training to Mohan Apparel, enrolled in Chennai, Tamil Nadu. The training is held at Amogya Institute’s classrooms.
Location of supplier: Bangalore, Karnataka
Place of supply: Location of Mohan Apparel is Chennai, Tamil Nadu.
Since this is an interstate supply and the tax applicable for it is IGST.

For Instance

Amogya Institute of Fashion Designing in Bangalore, Karnataka, provides an undergraduate course in fashion designing to students at its institute.
Location of supplier: Bangalore, Karnataka
Place of supply: The training is provided in Bangalore, Karnataka
Since this is an intrastate supply and the taxes applicable for it are CGST and SGST

For Instance

A man in Hyderabad, Andhra Pradesh, purchases tickets for the Island Tourism Festival in Andaman and Nicobar Islands from the Department of Tourism of Andaman and Nicobar Islands.
Location of supplier: Andaman and Nicobar Islands
Place of supply: The Island Tourism Festival is held in Andaman and Nicobar Islands
Since is an intra-Union Territory supply and the taxes applicable for it will be CGST+ UTGST

For Instance

Monica Event Organizers, enlisted in Mumbai, gives event administration services to Komal Automobiles, enrolled in Delhi, for their yearly sales event in Mumbai.
Location of supplier: Mumbai
Place of supply: Komal Automobiles is located in Delhi.
because it is an interstate supply and the tax applicable for it  is IGST.

For Instance

Monica Event Organizers, in Mumbai, gives event administration services to a client situated in Rajasthan, for her wedding gathering in Mumbai.
Location of supplier: Mumbai
Place of supply: The wedding is held in Mumbai
because it is an intrastate supply, the taxes applicable for it are CGST + SGST

 

Determining the Place of Supply of ‘Specific ‘Services

2017-05-15