PLACE OF SUPPLY OF SERVICES UNDER GST REGIME – PART II
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 6-6-2017
In the previous part the place of supply of services where location of supplier and recipient is in India has been discussed. In this part the place of supply of services where location of supplier or location of recipient is outside India. Section 13 (1) of the Integrated Goods and Services Tax Act, 2017 provides that the provisions of Section 13 shall apply to determine the place of supply of services where location of supplier of location of recipient is outside India.
Place of supply of goods
Section 13(3) provides that the place of supply of the following services shall be the location where the services are actually performed-
* services supplied in respect of goods which are required to be made-
* physically available by the recipient of services to the supplier of services; or
* to a person acting on behalf of the supplie
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l, inn, guest house, club or campsite, by whatever name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including that of architects or interior decorators, shall be the place where the immovable property is located or intended to be located.
Section 13(6) provides that where the above said services is supplied more than one location, including a location in the taxable territory, the place of supply shall be the location in the taxable territory.
For admission or organization of an event
Section 13(5) provides that the place of supply of services supplied by way of admission to, or organization of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events and of services ancillary to such admission or organization shall be the place where the event is actually held.
Section 13(6) provides where the above said service is supplied
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efines the term 'account' as an account bearing interest to the depositor and includes a non resident external account and a non resident ordinary account.
The explanation (b) to this section defines the expression 'banking company' as having the same meaning as assigned to it under section 45A(a) of the Reserve Bank of India Act, 1934. Section 45A(a) of the Reserve Bank of India Act, 1934 defines the expression 'banking company' as a banking company as defined in section 5 of the Banking Regulation Act, 1949 and includes the State Bank of India, any subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959, any corresponding new bank constituted by section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and any other financial institution notified by the Central Government in this behalf.
The explanation (c) to this section defines the expression 'non-banking financial company' as-
* a financial institution which is a
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t the place of supply of the services consisting of hiring of means of transport, including yachts but excluding aircraft and vessels, up to a period one month, shall be the location of the supplier of services.
For transportation of goods other than mail or courier
Section 13(9) provides that the place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods.
For the passenger transportation services
Section 13(10) provides that 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.
Section 2(3) of the Act defines the expression 'continuous journey' as a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stopover between any of
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tory conditions are satisfied-
* the location of address presented by the recipient of services through internet is in the taxable territory;
* 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;
* the billing address of the recipient of services is in the taxable territory;
* the internet protocol address of the device used by the recipient of services is in the taxable territory;
* the bank of the recipient of services in which the account used for payment is maintained is in the taxable territory;
* the country code of the subscriber identity module card used by the recipient of services is of taxable territory;
* the location of the fixed land line through which the service is received by the recipient is in the taxable territory.
Power of Government
Section 13(13) provides that in order to prevent double taxation or non taxation
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