GST INDIA DAILY

Last week we have gone-through overview of Place of Supply under GST. Read Part 9 of Place of Supply under GST, Please go through. Part Link:

https://wordpress.com/read/blogs/170704436/posts/696

DETERMINATION OF PLACE OF SUPPLY OF SERVICES

We have seen the provisions on how to determine the place of supply of services where location of supplier and the recipient of services is in India.

From this article, let us understand the provisions to determine the place of supply of services where the location of the supplier or that of the recipient is outside India. Transactions in which both the recipient as well as provider are outside India are not covered here.

General provision:

The general principles concerning the place of supply of services except the services specified shall be

• The location of the recipient of services if the details are available.
• If not, the place of supply shall be the location of the supplier of services.

Specified Services:

1. Supply of services in respect of goods:

Services supplied in respect of goods which are required to be made physically available by the recipient to the supplier or to a person acting on behalf of the supplier. The service includes which are provided from a remote location by way of electronic means.

The supply of services requires the physical presence of the recipient or the person acting on his behalf with the supplier, the place of supply of such services shall be the location where the services are actually performed.

Determination of place of supply:

The place of supply of such service shall be the location where goods are situated at the time of supply of services.

Exemption:- It shall not apply in the cases where services are supplied in respect of goods that are temporarily imported into India for repairs. If after repairs, such goods are exported without being put to any other use in India.

Example-

1. Ms. Brindha of New Delhi upgraded her ERP computer software through internet. The place ofsupply will be where the system is located which is in NewDelhi.

• Yellow Ltd of Ahmedabad (Gujarat) imports machinery from Germany to be installed in its factory at Gujarat. The service engineer also arrives for installation of machinery as per the contract. Since, the machinery is getting installed at Gujarat, the place of supply of installation services will be Gujarat.

• Chimes Ltd exported goods to Yahoo Inc of Newyork. The goods were imported into India for free repairs for one year as per the contract. The goods were exported after the repairs. In this case place of supply is the location of recipient, Newyork as they are imported to India only temperarily.

• Ms.Natasha who is an actress from Mumbai(Maharashtra) hired a hair stylist from Newyork for a fashion show. The stylist  came to India for providing services. The place of supply for such service is the place where the service was provided which is Mumbai.

• Services in relation to immovable Property:

Services which are performed in respect to the immovable property.

1. Services supplied in this regard by experts and estate agents
2. Supply of accommodation by a hotel, inn, guest house, club or campsite
3. Grant of rights to use immovable property
4. Services for carrying out or co-ordination of construction work including that of architects or interior decorators

Determination of place of supply:

The place of supply of such service shall be the location where the immovable property is situated at the time of supply of services or intended to be placed.

Example:

1) Mr Daniel,an architect from Mysore, karnataka, provides services to a construction project in Canada. The place of supply will be Canada.

2) Mr. Arun, a carpenter enters into a contract with Mr. Francis of London for manufacturing of equipment in the construction projects at Mumbai and Berlin. The place of supply will be Mumbai. Since, immovable properties are located in more than one location including a location in taxable territory, the place of supply will be the location in taxable territory, Mumbai.

STAY TUNE TO THE RIDE OF GST WAVE

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MANIMARAN KATHIRESAN ( ON BEHALF OF GST INDIA DAILY TEAM)