1. How to determine the Place of Supply of Service where the location of supplier of service and location of the recipient of service is in India?
For determining the place of supply in the above circumstance, the services are categorized as follows:-
- Services where place of supply is location of immovable property or boat or vessel
- Services where the place of supply is the location of performance
- Services in relation to training and performance appraisal
- Services of admission to an event
- Services relating to conduct of an event
- Goods transportation services
- Passenger transportation services
- Services on board a conveyance
- Telecommunication services
- Banking and financial services
- Insurance services
- Advertisement services
- Online information and database services
2. What are the services for which place of supply is the location of immovable property or boat or vessel?
- Services that are directly in relation to an immovable property like that of architects, interior decorators, surveyors, engineers and other related experts, estate agents, any service by way of grant of rights to use immovable property or for carrying out construction work
- Services by way of lodging accommodationby a hotel, inn, guesthouse, homestay, club or campsite, and including a house boat or other vessel
- Services by way of accommodation in any immovable property for organizing any marriage or reception or matters related therewith, official, social, cultural, religious or business function including services in relation to such function at such property or
- Any services ancillary to those mentioned in (a), (b) and (c)
It may be noted that if the location of immovable property or boat or vessel is located or intended to be located outside India, the place of supply shall be location of the recipient.
For example, Mr Lovely Singh of Chandigarh avails the architectural services of Ravi Associates registered in Delhi for constructing a mansion in Toronto, then the place of supply shall be Chandigarh.
Where the immovable property is located in more than one State, the supply of service shall be treated as made in each of the States to the extent of the value of services separately collected in terms of contract or any other prescribed manner.
3. What are the services where the place of supply is the location of performance?
- supply of restaurant and catering services
- personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery
4. How place of supply is ascertained for training and performance appraisal services?
If it is rendered to registered person, then the location of such person. Otherwise, it is location of actual performance of service.
5. How place of supply is determined for admission to an event or amusement park?
Place of supply of services by way of admission to a cultural, sporting, scientific, educational or entertainment event or amusement park or any other place and services ancillary thereto shall be the place where the event is actually held or amusement park is located.
6. How place of supply is determined for organizing an event?
The following services comes under this category namely-
- Organisation of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of service in relation to a conference, fair, exhibition, celebration or similar events or ancillary services thereto
- Services by way of assigning sponsorship for any of the above events.
If the above services are rendered to a registered person, then the location of such person. Otherwise, it is location where the event is actually held.
It may be noted that if the event is held abroad, the location shall be location of the recipient.Ujjala ltd registered in Delhi hires the services of Razzmataz associates of Delhi for organizing its annual sales conference at Dubai. The Place of supply is Delhi.
If event is held in more than one state, the place of supply of services shall be taken as being in each of the states to the extent of value of services as per the contract or any other prescribed manner in the absence of contract.
7. How place of supply is determined for goods and passenger transportation?
In both cases, if the service is rendered to registered person then it is the location of the recipient.
Otherwise, the place of supply shall be the location where goods are handed over for transportation for goods transport and the place where the passenger embarks on the conveyance for transport.
It may be noted that return journey in the case of passenger transportation shall be treated as separate journey though the right of passage for both onward and return is issued at the same time.
8. How place of supply is ascertained for services rendered on board a conveyance?
The word conveyance covers all modes of conveyance such as boat, vessel, aircraft, train or motor vehicle. In all these cases, place of supply for any service rendered on board the conveyance would be the location of the first scheduled point of departure of that conveyance for the journey.
9. How place of supply is arrived at for telecommunication services?
||Place of supply
||Fixed line service (internet leased circuit, cable connection, dish antenna)
||Place of installation
||Mobile Connection –Post Paid services
||Address on record of the recipient
||Mobile Connection- Prepaid Services through vouchers sold other than online
||Place of sale of voucher/receipt
||Mobile Connection- Prepaid services through vouchers sold online
||Address on record of customer
10. How place of supply is determined for banking and financial services?
If the service is rendered to a person whose is available on record, then the place of supply shall be location of the recipient as per records.
Otherwise, it is location of the supplier of service.
11. How place of supply is determined for insurance services?
If the service is rendered to a registered person, then the location of recipient.
Otherwise, the location of recipient of services as per records.
12. How place of supply ascertained for other non-specified services?
Place of supply for advertisement services rendered to Central govt, State govt, a statutory body or local authority shall be taken as located in each of the states.
For all the other non-specified services rendered to a registered person, the place of supply shall be the location of the registered person. Otherwise, the location of the recipient if address is available on record. If address is unavailable then the location of supplier of services.