PLACE OF PROVISION OF

SERVICERULES

By CA Tarannum Khatri

place of provision of service

Rule 3

RULE 14 Later rule prevails over the rules that

merit equal consideration. If one rule is specific and other is

general, specific rule prevails over a general provision, even if general rule appears later.

RULE 12

Place of provision of service provided on board a conveyance during passenger transport shall be the first scheduled point of departure for the journey

Examples : movies , music, video, games provided on board a vessel, aircraft, roadways bus ,rail .

RULE 11 Place of provision of passenger

transportation for continuous journey is where journey commences.

Continuous journey : where single or more than one ticket issued at the same time and which involves no stopover between any legs of journey for which one or more separate tickets are issued.

RULE 10 Place of provision of goods

transportation service is destination of goods.

Mail or courier services are not covered in this Rule.

For goods transport agency : place of provision shall be location of person liable to pay tax.

RULE 9 Place of provision of following services

shall be the location of Service Provider1. General banking services to account

holder2. Intermediary services- broker, agent3. Online information and database

access or retrieval services-matrimonial services, social networking sites, trade statistics provider.

4. Service consisting of hiring of means of transport up to a period of one month.

RULE 8 Service taxable where provider and

receiver are located in taxable territory, even if service provided outside India.

When service provider and receiver is in taxable territory, p.o.p. will be location of service receiver.

Even if service provided outside India , service is taxable if both the parties are in taxable territory!!!

This rule is not applicable where any rule from 9 to 12 is applicable.

RULE 7 Where any services referred to in rule 4,5

or 6 is provided at more than one location , including a location in the taxable territory, its place of provision shall be location in the taxable territory where the greatest proportion of service is provided.

If a firm has provided 20% service in Gujarat,

25% In Kerala and 55% In us. , place of provision is Kerala.

Even 1% service is provided in India and 99% in abroad, still it will be taxable !!!

RULE 6 Place of provision is place of events

where events are take place.

Cultural, sporting, educational, entertainment, exhibition, conference etc covered under this rule.

RULE 5 Place of provision of immovable

property is where immovable property is located.

Examples : construction ,alteration ,repair , service of real estate agents, surveying of land, hotel accommodation.

Not included : capital gain calculation by CA,

advice for property not related to specific sites.

RULE 4 Place of provision of performance based

service is where performance takes place.

it relates to goods that are required to made physically available.

Does not cover goods that are temporary imported for repair, reconditioning.

When services provided to individual or his representative and which require physical presence of the receiver. Like beauty par lour service.

RULE 3 Location of service receiver is normal

place of provision of service. If location of service receiver is not

ascertainable , location of service receiver is place of provision of service.

This rule is default rule, it applies when no rules are applicable.

Thanks for ReadingCA Tarannum Khatri

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