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/744

DETERMINATION OF PLACE OF SUPPLY OF SERVICES

Let’s proceed with the provisions to determine the place of supply of services where the location of the supplier or that of the recipient is outside India.

c) Admission to/ Organising  an event:-

1. Services provided by way of admission to, or organization of a cultural, artistic, sporting, scientific, educational or entertainment event
2. A celebration, conference, fair, exhibition or similar events
3. Services ancillary to such admission or organization

Determination of Place of supply:

• The place of supply of such services shall be the place where the event is actually held.
• If the services are supplied in more than one location which includes taxable and non-taxable territory, then the place of supply in all such situations shall be the location in the taxable territory.
• If any services are supplied in more than one State or Union territory, then the place of supply of such services shall be proportionately taken in each States or Union territories. And the value of such supplies specific to each State or Union territory shall be taken proportionately according to the terms of the contract. In case, there is no such contract, then the value of such services are determined as per the rules set.

Example:

1. Ms. Anna from Pitsburg comes to Mumbai to watch IPL Match. The place of supply for admission services is Mumbai which is location of the event.
2. Zinger Ltd from India organised a national medical conference at Singapore. The place of supply for organising the event is Singapore which is the location of the event.
3. A musical tour is organised Mumbai and Washington. 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.

d)   Financial Services:

(a) services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders;

(b) intermediary services;

(c) services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month.

Determination of Place of Supply:

            The place of supply of such services shall be the location of the supplier of services.

Example:

1) ICICI Bank of Mumbai (Maharashtra) provides services to the customers of New York for operating the NRE and NRO account and charges annual account maintenance charges, the place of supply shall be Maharashtra.

2) Mr. Jey hires a yacht service at Japan for his family on vacation. The place of supply shall be Japan.

E)   Transport of Goods:-

The supply of services transportation of goods, other than by way of mail or courier.

Determination of Place of Supply:

            The place of supply of such services shall be the location of the destination of services.

Example:

Zed ltd of Kolkatta, WestBengal transports goods from West Bengal to Cambodia through a shipping transport company. The place of supply is Cambodia which is the destination of goods

f) Passenger travel Services:

The place of supply in respect of passenger transportation services shall be the place where the passenger embarks on the conveyance for a continuous journey.

Example:

Mrs. Divya travels from Canada to India to visit her family in India. The place of supply shall be Canada since it is where she starts her journey.

g) On board a Conveyance:-

The services provided on board a conveyance during the course of a passenger transport services. This includes those services that are intended to be wholly or substantially consumed while on board. 

Determination of Place of supply:

The place of supply of such service shall be the first scheduled point of departure of that conveyance for the journey

Example:

Mr. Ajay Consumes food and beverage onboard his flight journey from Delhi, India to London. The place of supply shall be Delhi.

h) OIDAR Services:

The supply of online information and database access or retrieval services.

The person receiving such services shall be deemed to be located in the taxable territory, if any two of the following non-contradictory conditions are satisfied,

Conditions:

a) The location of address presented by the recipient of services through internet is in the taxable territory;

b) The credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory;

c) The billing address of the recipient of services is in the taxable territory;

d) The internet protocol address of the device used by the recipient of services is in the taxable territory; (e) the bank of the recipient of services in which the account used for payment is maintained is in the taxable territory;

f) The country code of the subscriber identity module card used by the recipient of services is of taxable territory;

g) The location of the fixed land line through which the service is received by the recipient is in the taxable territory.

Determination of place of supply:

The place of supply of online information and database access or retrieval services shall be the location of the recipient of services.

Example:

1. Miss. Prashitha purchases and downloads story books to her tablet from Goodreads ltd which provides e-book services by way of online applications. The Place of supply shall be the location of the recipient which is Coimbatore (Tamilnadu).
2. Mr. Harsha from Pune (Maharashtra) utilises data digital starage services from Giga Pvt Ltd, Italy. The place of supply of such service is Maharashtra.

STAY TUNE TO THE RIDE OF GST WAVE

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THANKS

MANIMARAN KATHIRESAN ( ON BEHALF OF GST INDIA DAILY TEAM)