WeP Resources

Place of Supply of Service in Cross-Border Transaction

Place of Supply of Service in Cross-Border Transaction

1. How to determine the Place of Supply of Service where the location of the supplier or the location of recipient is outside India?

The determination of Place of Supply depends on the type of service and for this purpose, services are grouped as follows:-

  • Services where place of supply is the location of actual performance
  • Services where place of supply is the location of immovable property
  • Services by way of admission to or organizing of event etc
  • Goods Transportation service
  • Passenger Transportation service
  • Services rendered on board a conveyance which is used for passenger transportation
  • Online Information and database access or retrieval services
  • Services where place of supply is the location of the supplier of service
  • Others
2. What are the services where the place of supply is the location of actual performance?
    • Services supplied in respect of goods that are required to be made available by the recipient of service to the supplier of service.
      For example, repair of consumer durables.
      However, service rendered by way of repairs on goods that are temporarily imported in to India and re-exported post repair are excluded.
      If said service is rendered through electronic means from a distant location, then the place of supply shall be the place where goods are actually located.

 

  • Services supplied to an individual which requires the physical presence of the recipient or agent of the recipient for effecting the supply of service.
3. What are the services where the place of supply is the location of immovable property?

Place of supply is the location of immovable property for the following services:-

  • Services supplied directly in relation to an immovable property by experts and estate agents
  • Supply of hotel accommodation by a hotel, inn, guesthouse, club or campsite
  • Services by way of grant of rights to use an immovable property
  • Services for carrying out or co-ordination of construction work
4. How place of supply is determined for services by way of admission to or organizing an event?

Services by way of admission to or organization of an event be it cultural, artistic, sporting, educational, entertainment or conference or similar events and services ancillary to such admission are covered under this category.

In all these cases, the place where the event is held would be the place of supply of service.

5. How place of supply is determined for goods transportation and passenger transportation service and for services rendered on board a conveyance?

Place of supply of goods transportation service other than by way of mail or courier is the place of destination of such goods.

In the case of passenger transportation, it shall be the place where the passenger embarks on a conveyance for continuous journey.

For services rendered on board a conveyance, the place of supply is the first scheduled point of departure of that conveyance for the journey.

6. What are the services where the place of supply is the location of the supplier of service?
  • Banking and financial services
  • Intermediary services
  • Services consisting of hiring of means of transport other than aircrafts and vessels except yachts upto a period of one month
7. How the place of supply is determined for online information and database access or retrieval service?

The place of supply shall be the location of recipient of service. Certain prescriptive norms are laid down to ascertain whether the recipient is located within the taxable territory of India.

8. How the place of supply is determined for non-specified services?

It shall be the location of the recipient of service. If the location of the recipient is unavailable, then the location of supplier of service is the place of supply of service.

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