Last week we have gone-through overview of Place of Supply under GST. Read Part 7 of Place of Supply under GST, Please go through. Part Link:
DETERMINATION OF PLACE OF SUPPLY OF SERVICES
In this article, let us understand how to determine the Place of Supply for telecommunication services.
- Telecommunication Services:-
Telecommunication services include the services of telephone, internet, broadband, data transfer, broadcasting, cable, DTH services, etc
Determination of Place of Supply:
For determining place of supply, telecommunication services are divided into 3 categories:
- Fixed Line:-
- Services provided using a fixed telecommunication line, leased circuit, internet leased circuit, cable or dish antenna
- Place of supply is the location where the telecommunication line, leased circuit, cable connection or dish antenna is installed.
- Post paid mobile connection:-
- Telecommunication services are mostly supplied through a mobile connection. This includes internet services provided on post-paid basis.
- Place of supply is the billing address of the recipient on the records of the supplier.
- Prepaid mobile connection:-
- Now a days, mobile communication services, internet service and direct to home television services are provided on a pre-payment basis. They are recharged through a voucher, internet or any other means.
- When recharge is done through internet banking or other electronic modes of payment, place of supply shall be the location of the recipient in the records of the supplier.
- When supplied by a selling agent/re-seller/distributor of the supplier, Place of supply will be the address of the supplier ie) selling agent /re-seller/distributor as per the records of the supplier at the time of supply
Leased circuit might be installed in more than one State or Union territory. A consolidated amount is charged for the supply of services relating to such circuit. Hence, the place of supply in such cases shall be each of the respective States or Union territories where services are given. And the value of such services shall be taken proportionately as per the contract. However, the value for supply of such a service shall be considered as per the rules set in case such a contract does not exist.
- Mr. Mohan from Chennai (Tamilnadu), obtains the services of DTH to his home from Nathan DTH, registered supplier in Bangalore (Karnataka). The place of supply is the place where the fixed line is installed. Hence the Place of supply is Tamilnadu.
- Ms. Lakshmi resides in Mysore (Karnataka) uses a postpaid mobile connection. The billing addresss for the same is at Coimbatore (TamilNadu). The Place of supply is The billing address of the postpaid mobile connection which is in Tamilnadu.
- Mrs. Radha who is a resident of Gujarat visits Mumbai. She recharges her prepaid mobile services from a registered retailer at Mumbai (Maharashtra) who supplies prepaid recharge vouchers to customers. The place of supply is the address of the registered supplier which is Maharashtra.
- Mr. Ratan, a resident from Trivandrum (Kerala) recharges his mobile network through his network’s application using the internet connection. He made the paymentfor the same via bank online transfer. The place of supply is the location where the services are received which is Kerala.
STAY TUNE TO THE RIDE OF GST WAVE
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MANIMARAN KATHIRESAN ( ON BEHALF OF GST INDIA DAILY TEAM)