4TH STUDY CIRCLE MEATING PLACE OF SUPPLY OF SERVICES Suresh Kumar K P, FCMA MOB: 98462 46567 09-12-2016

Taxing Services - History First introduced in 1994 through Finance Act 1994, Chapter V Levy of ST vide Entry 97 of Union List to of Schedule VII of Constitution 97 - Any other matter not enumerated in List II or List III including any tax not mentioned in either of those Lists. 92 C – inserted in the list through Constitution (Eighty-eighth Amendment) Act, 2003

Taxing Services - History Specified Services only taxable 01-07-1994 to 30-06-2012 – No Definition for Services 3 services in 1994 to 117 services in 2012 – as Taxable Services (Sec 65 (105)) 2012 – Service has defined (65 B 44) ST on all services - except negative list (66B) Negative List – 66D Declared Services – 66E Place of Provision of Services – vide Sec.66C

Place of Supply of “Service” Sec 9 and 10 of IGST Act – Define Place of supply of Service Sec 9 - where the location of supplier of service and the location of the recipient of service is in India Sec 9 (2) The place of supply of services made to a registered person shall be the location of such person. Sec 9 (3) The place of supply of services made to any person other than a registered person shall be (a) the location of the recipient where the address on record exists, and (b) the location of the supplier of services in other cases. EXCEPT IN THE CASES SPECIFIED IN SUB SECTION (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) and (15) Location of Supplier Location of recipient Post Paid Mobile WORK SHOP

Place of Supply of Services – Contd… Sec.9(4) of IGST Act. The place of supply of services shall be the location at which the immovable property or boat or vessel is located or intended to be located in the following cases (a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work, or (b) by way of lodging accommodation by a hotel, inn, guest house, homestay, club or campsite, by whatever name called and including a house boat or any other vessel, or (c) by way of accommodation in any immovable property for organizing any marriage or reception or matters related therewith, official, social, cultural, religious or business function including services provided in relation to such function at such property, or (d) any services ancillary to the services referred to in clause (a), (b) and (c),

Place of Supply of Services – Contd… Sec.9(5) of IGST Act. The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed.

Place of Supply of Services – Contd… Sec.9(6) of IGST Act. The place of supply of services in relation to training and performance appraisal to (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location where the services are actually performed.

Place of Supply of Services – Contd… Sec.9(7) of IGST Act. The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, or entertainment event or amusement park or any other place and services ancillary thereto, shall be the place where the event is actually held or where the park or such other place is located.

Place of Supply of Services – Contd… Sec.9(8) of IGST Act. The place of supply of services provided by way of— (a) organization of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of service in relation to a conference, fair, exhibition, celebration or similar events, or (b) services ancillary to organization of any of the above events or services, or assigning of sponsorship of any of the above events, to (i) a registered person, shall be the location of such person; (ii) a person other than a registered person, shall be the place where the event is actually held: PROVIDED that if the event is held outside India, the place of supply shall be the location of the recipient.

Place of Supply of Services – Contd… Sec.9(9) of IGST Act. The place of supply of services by way of transportation of goods, including by mail or courier to, (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.

Place of Supply of Services – Contd… Sec.9(10) of IGST Act. The place of supply of passenger transportation service to (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey. PROVIDED that where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in the manner specified in sub-sections (2) or (3), as the case may be

Place of Supply of Services – Contd… Sec.9(11) of IGST Act. The place of supply of services on board a conveyance such as vessel, aircraft, train or motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey

Place of Supply of Services – Contd… Sec.9(12) of IGST Act. The place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall (a) in case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services; (b) in case of mobile connection for telecommunication and internet services provided on post-paid basis, be the location of billing address of the recipient of services on record of the supplier of services;

Place of Supply of Services – Contd… Sec.9(12) of IGST Act. Contd….. (c) in cases where mobile connection for telecommunication, internet service and direct to home television services are provided on prepayment through a voucher or any other means, (i) through selling agent or a re-seller or a distributor of SIM card or re-charge voucher, shall be address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply; or (ii) by any person to the final subscriber shall be the location where such pre-payment is received or such vouchers are sold; (d) in other cases not covered in (b) and (c) above, shall be the address of the recipient as per records of the supplier of the service: PROVIDED that where address of the recipient as per records of the supplier of service is not available, the place of supply shall be location of the supplier of service: PROVIDED FURTHER that if such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, the location of the recipient of services on record of the supplier of services shall be the place of supply of such service.

Place of Supply of Services – Contd… Sec.9(13) of IGST Act. Contd….. The place of supply of banking and other financial services including stock broking services to any person shall be the location of the recipient of services on the records of the supplier of services: PROVIDED that if the location of the recipient of services is not on the records of the supplier, the place of supply shall be location of the supplier of services.

Place of Supply of Services – Contd… Sec.9(14) of IGST Act. Contd….. The place of supply of insurance services shall: (a) to a registered person, be the location of such person; (b) to a person other than a registered person, be the location of the recipient of services on the records of the supplier of services.

Place of Supply of Services – Contd… Sec.9(15) of IGST Act. Contd….. The place of supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for identifiable States, shall be taken as located in each of such States and the value of such supplies specific to each State shall be in proportion to amount attributable to service provided by way of dissemination in the respective States as may be determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf.

Sec 10 - where the location of supplier of service or the location of the recipient of service is outside India ………… ----------------- THANK YOU

“Service” Sec 2 (92) of CGST Act - “services’’ means anything other than goods; Explanation 1.- Services include transactions in money but does not include money and securities; Explanation 2.- Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. And Service include the SCHEDULE II items - MATTERS TO BE TREATED AS SUPPLY OF GOODS OR SERVICES But Services does not include SCHEDULE III items Go Back

Schedule II Service Specified in Schedule II 1 - Transfer Of Goods or right to use without transfer of Title 2 - Land and Building Any lease, tenancy, easement, licence to occupy land is a supply of services Any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services. 3 - Treatment or process Any treatment or process which is being applied to another person’s goods is a supply of services. RENT A CAR JOB WORK

COMPANY CAR USED FOR PERSONAL PURPOSE Schedule II COMPANY CAR USED FOR PERSONAL PURPOSE Service Specified in Schedule II 4 - Transfer of business assets Where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a supply of services.

Schedule II Service Specified in Schedule II 5 - The following shall be treated as “supply of service” renting of immovable property; construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier BUILDERS

Schedule II Service Specified in Schedule II 5 - The following shall be treated as “supply of service” - contd…… temporary transfer or permitting the use or enjoyment of any intellectual property right development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

Schedule II Service Specified in Schedule II 5 - The following shall be treated as “supply of service” - contd…… transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration Go Back to Service RESTAURANT

Schedule III ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES 1. Services by an employee to the employer in the course of or in relation to his employment. 2. Services by any Court or Tribunal established under any law for the time being in force. 3. (a) The functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities; 3. (b) The duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or

Schedule III ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES 3. (c) The duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause. 4. Services by a foreign diplomatic mission located in India. 5. Services of funeral, burial, crematorium or mortuary including transportation of the deceased. Go Back to Service

Supplier Sec. 2(94) of CGST Act - “supplier” in relation to any goods and/or services shall mean the person supplying the said goods and/or services and shall include an agent acting as such on behalf of such supplier in relation to the goods and/or services supplied; Go Back

Recipient Sec 2 (81) – CGST Act - “recipient” of supply of goods and/or services means- (a) where a consideration is payable for the supply of goods and/or services, the person who is liable to pay that consideration, (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available, and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply; Explanation.- The expression “recipient” shall also include an agent acting as such on behalf of the recipient in relation to the goods and/or services supplied. Go Back

Location of Supplier Sec.2(18) of IGST Act - “location of the supplier of services” means: (a) where a supply is made from a place of business for which registration has been obtained, the location of such place of business; (b) where a supply is made from a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment; (c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and (d) in absence of such places, the location of the usual place of residence of the supplier; Go Back

Location of Recipient Sec.2(17) of IGST Act - “location of the recipient of services” means: (a) where a supply is received at a place of business for which registration has been obtained, the location of such place of business; (b) where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment; (c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and (d) in absence of such places, the location of the usual place of residence of the recipient; Go Back

Fixed Establishment Sec.2 (8) of IGST Act - “fixed establishment” means a place other than the place of business which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs; Go Back to LOS

Place of business Sec 2 (22) of IGST Act - “place of business” includes (a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods and/or services; (b) a place where a taxable person maintains his books of account; or (c) a place where a taxable person is engaged in business through an agent, by whatever name called Go Back to LOS