12.2 General provision to determine place of supply of services

Question-1 [ICAI-F-Jan21-2(a)(ii)]

Mr. A (a Chartered Accountant registered in Kolkata) supplies services to his client in Bhubaneswar (registered in Bhubaneswar, Odisha). Determine place of supply.

Answer

1. Statutory Provision -

Section-12(2) of IGST Act - It states:

This subsection provides the general rules for determining the place of supply of services, except for those services specifically covered in subsections (3) to (14) of Section 12.

It states:

(a) If the service is supplied to a registered person - POS is the location of that registered person.

2. Conclusion

Service by Mr.A is not covered u/s 12(3) to 12(14) of IGST Act and Mr A provides services to Registered person, hence as per section 12(2) of IGST Act, POS shall be location of registered person i.e Bhubaneshwar, Odisha.

Question-1A [ICSI-E-J22-81-1]

Tanishqa of Delhi provides repair and maintenance services of machinery to Harika in Goa. Harika was registered in Orissa. What shall be the place of supply in respect of repair and maintenance services:

(A) Delhi; (B) Orissa; (C) Goa; (D) Goa and Orissa both

Answer

Goa i.e. location of registered person

12.3 POS of service related to/use of immovable Property, boat, vessel

Question-1 [ICAI-I-Sep24-6(b)(ii-3)]

Aakar Advertisement Agency, a registered person in Nagpur, Maharashtra, wants to display the products of its client's at most prominent places in different States. It took on rights to use the space on hoardings mounted on fixed surface attached to earth, situated in Udaipur, Rajasthan and in Gwalior, Madhya Pradesh from G.N. Enterprise registered in State of Chhattisgarh. Aakar Advertisement Agency has an exclusive right to use the space and also to manage the advertisements on the hoardings.

What will be the place of supply of services provided by the G.N. Enterprise to the Aakar Advertisement Agency?

Answer

Section 12(3) of IGST Act

The hoarding/structure erected on the land should be considered as immovable structure/fixture as it has been embedded in earth.

The place of supply of any service provided by way of supply/sale of space on an immovable property or grant of rights to use an immovable property is the location at which the immovable property is located, i.e. the location where such hoarding/ structure is located.

Thus, for hoarding located in Udaipur, place of supply is Udaipur, Rajasthan and for hoarding located in Gwalior, place of supply is Gwalior, Madhya Pradesh.

Question-2 [ICSI-P-D18-3(a)(v)-1]

K of Kerala avails architect services for his property located in Chennai (Tamil Nadu) from an architect H of Hyderabad in Telangana State.

Answer

As per section 12(3) of IGST Act, 2017, place of supply of services of architects in relation to immovable property, shall be the location where immovable property is located.

Therefore, in the given case place of supply shall be Chennai (Tamil Nadu).

Question-3 [ICSI-P-D21-2A(iv)(a)-1]

Ajay the owner of an immovable property located in New Delhi gives on rent the said property to Basant of U. P. for use in commercial purposes. Determine the place of supply of services.

Answer

As per Section 12(3) of IGST Act, 2017 in respect of services provided directly in relation to immovable property, the place of supply shall be place where immovable property is located or intended to be located.

Therefore, in the given case, the place of supply of service shall be New Delhi.

Question-4 [ICSI-P-D21-2A(iv)(b)-1]

Rahul, a Delhi based Interior Decorator provides his professional services to Rama Enterprises of Agra in respect of property which is intended to be located in Punjab.

Answer

As per section 12(3) of IGST Act, 2017 in respect of services provided directly in relation to immovable property, the place of supply be place where immovable property is located or intended to be located.

The place of supply of services shall be Punjab as the concerned property is intended to be located in Punjab.

12.3.1 POS in case of immovable Property, boat, vessel located outside India

Question-1 [ICSI-P-D21-2A(iv)(e)-1]

A Delhi based builder provides construction services to Punjab based company in respect of construction of its new building in Bangladesh.

Answer

As per Section 12(3) of IGST Act, 2017 in respect of services provided directly in relation to immovable property, the place of supply shall be place where immovable property is located or intended to be located. If the immovable property is located or intended to be located outside India, the place of supply shall be location of the recipient.

Hence in the given case, recipient is in Punjab, hence POS shall be Punjab.

Question-1A [ICSI-P-D21-O-4(a)(i)-5]

Salman Khan of Delhi purchased a Residential plot in France. He hires Mumbai based architect to design the structure for his Residential plot.

Answer

As per Section 12(3) of IGST Act, 2017 in respect of services provided directly in relation to immovable property, the place of supply shall be place where immovable property is located or intended to be located. If the immovable property is located or intended to be located outside India, the place of supply shall be location of the recipient.

Hence, the place of supply will be Delhi, being the location of recipient.

Question-2 [ICAI-F-M18-2(c)-5]

Mr. Mahendra Goyal, an interior decorator provides professional services to Mr. Harish Jain in relation to two of his immovable properties.

Determine the place of supply in the transactions below as per provisions of GST law in the following independent situations:

Explain the relevant provisions of law to support your conclusions.                         [M-5]

Answer

Case I

As per section 12(3) of the IGST Act, 2017, where both the service provider and the service recipient are located in India, the place of supply of services directly in relation to an immovable property, including services provided by interior decorators is the location of the immovable property.

However, if the immovable property is located outside India, the place of supply is the location of the recipient.

Since in the given case, both the service provider (Mr. Mahendra Goyal) and the service recipient (Mr. Harish Jain) are located in India and the immovable property is located outside India (New York), the place of supply will be the location of recipient i.e., Mumbai.

Case II

As per section 13(4) of the IGST Act, 2017 where either the service provider or the service recipient is located outside India, the place of supply of services directly in relation to an immovable property including services of interior decorators is the location of the immovable property.

Since in the given case, service recipient (Mr. Harish Jain) is located outside India (New York), the place of supply will be the location of immovable property i.e., Paris (France).

12.5 POS in case of training and performance services

Question-1 [ICSI-P-J19-2(c)-5]

Mrs. Bharghavi is a registered supplier under GST law in Coimbatore, Tamil Nadu, running a factory for manufacture of electric motors. For giving training to her employees, she has utilized the services of Vibrant Trainers Pvt. Ltd., a registered supplier in Trissur, Kerala. The training programs are to be held at Trissur.

(i) What will be the place of supply of services provided by Vibrant Trainers Pvt. Ltd. to Mrs. Bharghavi?

(ii) Will your answer be different, if Mrs. Bharghavi is not a registered supplier? (2 marks)

(iii) In the situation given in the problem, if the training is to be provided at Singapore, what will be the place of supply?

Answer

(i) When service in relation to training/ organization of an event (like training) is provided to a registered person, place of supply is the location of recipient [Section 12 of the IGST Act, 2017].

Therefore, if Mrs. Bhargavi is a registered person, the place of supply will be the location of recipient, i.e., Coimbatore, Tamil Nadu.

(ii) When service in relation to training/ organization of an event (like training) is provided to an unregistered person, the place of supply is the location where the services are actually performed or the event is actually held [Section 12 of the IGST Act, 2017]. Therefore, in this case, place of supply will be Trissur, Kerala.

(iii) When the training takes place outside India (Singapore), the place of supply will be the location of recipient i.e. Coimbatore, Tamil Nadu whether Mrs. Bharghavi is registered or unregistered. [Seems wrong answer]

Question-1A [ICSI-E-J21-59-1]

Chennai Branch of BA Trainers Ltd rendered training to employees of CD Co. Ltd. of Hyderabad at Lonawala near Pune (Maharashtra). The head office of BA Trainers is located in Kolkata. Where is the place of supply of services?

(A) Chennai (B) Kolkata (C) Hyderabad (D) Lonawala (Maharashtra)

Answer

(i) As per section 12(5) of IGST Act, if service in relation to training or performance appraisal is provided to

(a) registered person, then POS shall be location of such person.

(b) person other than registered person, then POS shall be location where such services are performed.

(a) If CD Co. Ltd is registered person, then POS shall be location of such person i.e. Hyderabad.

(b) If CD Co. Ltd is not registered person , then POS shall be location where services are performed i.e Lonawala. [Section-12(5) of IGST Act]

Question-2 [ICSI-E-J19-4(b)(iii)-1] [Supply to URP]

HRD Ltd., Hyderabad provides training and performance appraisal services at Varanasi to the employees of KK Ltd., an unregistered entity located in Patna. Determine POS.

Answer

As per section 12(5) of IGST Act, if service in relation to training or performance appraisal is provided to person other than registered person, then POS shall be location where such services are performed.

Hence in given case, service is provided to unregistered person at Varanasi, hence POS shall be location of training i.e. Varanasi.

Question-2A [ICSI-P-J21-O-4A(ii)(e)-1]

R. P. Singh a consultant, whose registered office is in Bhopal provides training to his client’s employees at Varanasi. The client is an unregistered firm in Udaipur.

Answer

As per section 12(5) of IGST Act, if service in relation to training or performance appraisal is provided to person other than registered person, then POS shall be location where such services are performed.

Hence in given case, service is provided to unregistered person at Varanasi, hence POS shall be location of training i.e. Varanasi.

Question-2B [ICSI-P-D21-O-4(a)(ii)-1]

Raj provided training and development to the employees of ABC a firm which is not registered under the Act. ABC is located in Gurugram but training and development programme was conducted in Noida.

Answer

As per section 12(5) of IGST Act, if service in relation to training or performance appraisal is provided to person other than registered person, then POS shall be location where such services are performed.

As ABC is not registered, the place of supply shall be the place where services are actually performed i.e. Noida.

Question-3 [ICSI-E-D21-64-1] [Supply to URP and Inter-state Supply]

JCC Professional Services is a firm constituted by Company Secretaries having office at Jaipur has been engaged by PQR International Ltd Mumbai for providing training to its employees working in Nagpur office.

The place of supply (POS) in this case shall be ............... and tax would be charged by JCC Professional Services under.............. . (Assuming that the client was unregistered)

(A) Jaipur; CGST/SGST

(B) Mumbai; IGST

(C) Nagpur; IGST

(D) Jaipur; IGST

Answer

(i) As per section 12(5) of IGST Act, if service in relation to training or performance appraisal is provided to person other than registered person, then POS shall be location where such services are performed.

Hence in given case, service is provided to unregistered person, hence POS shall be location of training i.e. Nagpur.

(ii) As per section 7(3) of IGST Act, location of supplier i.e. Jaipur and POS i.e. Nagpur is in different state, then such supply of service is inter-state supply. Hence IGST shall be levied.

Question-4 [ICSI-P-J22-2A(i)-5] [Combination of Services]

Secure Meter Ltd., registered in Gurgaon, Haryana, is engaged in manufacturing heavy steel machinery. It enters into an agreement with Rajveer Associates, registered in Delhi, for imparting motivational training to the top level management of Secure Meter Ltd. in a 10 day residential motivational training program at an agreed consideration of Rs.21,00,000.

Rajveer Associates books the conference hall along with the rooms of Hotel Shourya residency in Ajmer (registered in Rajasthan) for the training program, for a lump sum consideration of Rs.4,00,000.

You are required to determine the place of supply in respect of the supply(ies) involved in the given scenario in the context of CGST Act, 2017.

Answer

In the given situation, two supplies are involved:

(i) Services provided by Rajveer Associates to Secure Meter Ltd. by way of providing motivational training to its top management.

(ii) Services provided by Hotel Shourya Residency to Rajveer Associates by way of accommodation in said hotel for organizing the training program.

The place of supply in respect of each of the above supplies is determined as under:

1. As per Section 12(5)(a) of the IGST Act, 2017, the place of supply of services provided in relation to training and performance appraisal to a registered person, shall be the location of such person.

Therefore, the place of supply of services supplied by Rajveer Associates to the registered recipient - Secure Meter Ltd. by way of providing motivational training to its top management is the location of Secure Meter Ltd., i.e. Gurgaon, Haryana.

2. As per Section 12(3)(c) of the IGST Act, 2017, the place of supply of services, by way of accommodation in any immovable property for organizing, inter alia, any official/business function including services provided in relation to such function at such property, shall be the location at which the immovable property is located.

Therefore, the place of supply of services supplied by Hotel Shourya Residency to Rajveer Associates by way of accommodation of conference hall along with the rooms is location of Hotel Shourya Residency i.e. Ajmer, Rajasthan.

12.6 POS in case of services by way of ADMISSION to events/amusement park/other places

Question-1 [ICSI-E-D21-O-97-1]

What is the place of supply of services, in case of services by way of admission to a culture, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto under section 12 of the Integrated GST Act, 2017?

(A) Where the event is actually held

(B) Location of recipient

(C) Location of service provider

(D) Any other place

Answer

As per section 12(6) of IGST Act, services provided by way of admission to

1. a cultural, artistic, sporting, scientific, educational, entertainment event or
2. amusement park or any other place and

© services ancillary thereto,

POS of above services shall be the place where

1. the event is actually held or
2. the park or such other place is located.

Question-2 [ICAI-F-Jan21-2(a)(vi)-1]

Mr. X of Kolkata purchased online tickets for Aquatica water park in Mumbai.

Answer

As per section 12(6) of IGST Act, service provided by way of admission to amusement park, POS shall be location where park is located.

Hence in given case, park is located in Mumbai, hence POS shall be Mumbai.

12.7 POS in case of organization of events

Question-1 [ICAI-F-M18-1b-5]

Mr. Murthy, an unregistered person and a resident of Pune, hires the services of M/s Sun Ltd. an event management company registered in Delhi, for organizing of the new product launch in Bengaluru.

(i) Determine the place of supply of services provided by M/s Sun Ltd.

(ii) What would your answer be in case the product launch takes place in Bangkok?

(iii) What would your answer be in case Mr. Murthy is a registered person and product launches take place in Bengaluru and Bangkok?

Answer

1. Statutory Provision

As per section 12(7)(a)(ii) of IGST Act, 2017, when service by way of organization of an event is provided to

(a) Registered person, POS shall be location of such person

(b) a person other than registered person and event is held in India, POS shall be the location where the event is actually held

(c) person other than registered person and event is held in outside India, POS shall be the location of recipient.

2. Advice

(i) In the given case, the service recipient [Mr. Murthy] is unregistered and event is held in India, hence POS is the location where the event is actually held i.e., Bengaluru.

(ii) If product launch takes place outside India [Bangkok], the place of supply will be the location of recipient i.e., Pune.

(iii) If Mr. Murthy is a registered person, then in both the cases i.e., either when product launch takes place in Bengaluru or Bangkok, the place of supply will be the location of recipient i.e., Pune.

Question-1A [ICAI-F-M18-O-1c-5]

Determine the place of supply for the following independent cases under the IGST Act, 2017:

(i) Grand Gala Events, an event management company at Kolkata, organizes two award functions for Kalyan Jewellers of Chennai (Registered in Chennai) at New Delhi and at Singapore.

(ii) Perfect Planners (Bengaluru) is hired by Dr. Kelvin (unregistered person based in Kochi) to plan and organize his son's wedding at Mumbai. Will your answer be different if the wedding is to take place at Malaysia?

Answer

1. Statutory Provision

As per section 12(7)(a)(ii) of IGST Act, 2017, when service by way of organization of an event is provided to

(a) Registered person, POS shall be location of such person

(b) a person other than registered person and event is held in India, POS shall be the location where the event is actually held

(c) person other than registered person and event is held in outside India, POS shall be the location of recipient.

2. Advice

(i) Since, in the given case, the award functions at New Delhi and Singapore are organized for Kalyan Jewellers (registered in Chennai), place of supply in both the cases is the location of Kalyan Jewellers i.e., Chennai.

(ii) Since, in the given case, the service recipient [Dr. Kelvin] is unregistered and event is held in India, place of supply is the location where the event is actually held i.e., Mumbai.

However, if the wedding is to take place outside India [Malaysia], the place of supply is the location of recipient, i.e. Kochi.

Qiestion-1B [ICAI-F-N22-3a-5]

Determine the place of supply for the following independent cases:

(i) Festival Event, an event management company at Mumbai, organises two business promotion events for Prabhu Enterprises (registered in Ahmedabad, Gujarat) at New Delhi and in Malaysia.

(ii) Global Planners (Jodhpur, Rajasthan) is hired by Mr. John (unregistered person based in Kochi, Kerala) to plan and organize his son's wedding at Mumbai, Maharashtra. Will your answer be different if the wedding is to take place in Singapore?

Answer

1. Statutory Provision

As per section 12(7)(a)(ii) of IGST Act, 2017, when service by way of organization of an event is provided to

(a) Registered person, POS shall be location of such person

(b) a person other than registered person and event is held in India, POS shall be the location where the event is actually held

(c) person other than registered person and event is held in outside India, POS shall be the location of recipient.

2. Advice

(i) In the given case, service is provided to registered person, hence place of supply of:

• event held at New Delhi is Ahmedabad, Gujarat, and

• event held at Malaysia is Ahmedabad, Gujarat.

(ii) In the given case, service is provided to unregistered person, hence place of supply:

• if wedding takes place at Maharashtra is Mumbai, Maharashtra, [Location of event]

• if wedding takes place at Singapore is Kochi, Kerala [Location of recipient]

Question-1C [ICSI-P-D20-O-4A(ii)(a)-3] [S-12(7)]

Madhu Sudan, a resident individual of Jaipur, Rajasthan and not registered under GST law, has engaged Events and Events Pvt Ltd, event managers, having their registered office as per GST law at Mumbai, Maharashtra, to organise the wedding function of his daughter in a palace located in Ahmedabad, Gujarat.

Determine the place of service (POS) for this event by giving in brief the provisions of CGST Act, 2017.

Will your answer be different, if the function is to take place at Colombo, Sri Lanka. (3 marks).

Answer

1. Statutory Provision

As per section 12(7) of IGST Act, 2017, when service by way of organization of an event is provided to

(a) Registered person, POS shall be location of such person

(b) a person other than registered person and event is held in India, POS shall be the location where the event is actually held

(c) person other than registered person and event is held in outside India, POS shall be the location of recipient.

2. Advice

(i) Since, in the given case, the service recipient Madhu Sudan is an unregistered person and event is being held in Ahmedabad, India, therefore Place of Supply (POS) is the location where the event is actually held i.e., Ahmedabad, Gujarat.

(ii) However, if the wedding is to take place outside India in Colombo, Sri Lanka, the place of supply will be Jaipur, Rajasthan i.e. the location of the recipient of services.

Question-2 [ICSI-E-D20-65-1] [URP]

Ramiz Ahmed, unregistered person based in Lucknow engages the services of an Event Management Company based in Delhi for his son marriage planned as a destination wedding at a Palace located in Jaipur. The place of supply in this case shall be ---- and tax to be charged under ---------

(A) Lucknow, IGST; (B) Delhi, IGST; (C) Lucknow, SGST; (D) Jaipur, IGST

Answer

(i) As per section 12(7)(a)(ii) of IGST Act, 2017, when service by way of organization of an event is provided to a person other than registered person and event is held in India, POS shall be the location where the event is actually held.

Hence in the given case, service is provided to URP and event is held at Jaipur, hence POS shall be Jaipur

(ii) As per section 7(3) of IGST Act, location of supplier i.e. Delhi and POS i.e. Jaipur is in different state, then such supply of service is inter-state supply. Hence IGST shall be levied.

Question-2A [ICSI-E-D21-68-1]

Madhu Sudan of Kota an unregistered person engages Wedding Event Company registered at Delhi for a destination marriage of her daughter Radhika to be solemnized in November, 2021 at Royal Palace of Jam Nagar, Gujarat. State and find out the place of services (POS) as per provisions of IGST Act, 2017 in this case.

(A) Kota (B) Jam Nagar, Gujarat (C) Delhi (D) Both in (B) & (C)

Answer

As per section 12(7) of IGST Act, 2017, when service by way of organization of an event is provided to a person other than registered person and event is held in India, POS shall be the location where the event is actually held.

Hence in the given case, service is provided to URP and event is held at Jamnagar, hence POS shall be Jamnagar.

Question-3 [ICSI-E-D19-65-1] [RP]

Mr. Ravi Raj a registered person based in Ahmedabad solicits the services of an Event Management Company based in Mumbai for his daughter’s marriage planned as a destination wedding at a Palace located in Udaipur. The place of supply in this case shall be ....................... and tax to be charged under.....................

(A) Ahmedabad, IGST; (B) Mumbai, IGST; (C) Udaipur, IGST; (D) Ahmedabad, SGST

Answer

(i) As per section 12(7) of IGST Act, 2017, when service by way of organization of an event is provided to registered person, POS shall be location of such person

Hence in the given case, service is provided to registered person at Ahmedabad, hence POS shall be Ahmedabad.

(ii) As per section 7(3) of IGST Act, location of supplier i.e. Mumbai and POS i.e. Ahmedabad is in different state, then such supply of service is inter-state supply. Hence IGST shall be levied.

Question-4 [ICSI-P-D21-O-4(a)(iv)-1]

Golden Events, an event management company at Noida (UP), organised a Customer Meet function for M/s Bala Diamonds of Bhopal (Registered in M.P.), at Maldives.

Answer

As per section 12(7) of IGST Act, 2017, when service by way of organization of an event is provided to registered person, POS shall be location of such person

Since the recipient is a registered person and the event is held outside India, the place of supply is the location of the recipient i.e. Bhopal, (M.P.).

12.8 POS of service by way of transportation of goods including mail or courier

Question-1 [ICAI-F-Jan21-2(a)(vii)-1]

Mr. Z, an unregistered person of Kolkata, sends a courier from New Delhi to his friend in Chennai, Tamil Nadu while he was on trip to New Delhi.

Answer

As per section 12(8)(b) of IGST Act, POS of services by way of transportation of goods, including by mail or courier to a person other than a registered person, shall be the location at which such goods are handed over for their transportation.

Hence in the given case, Mr. Z is unregistered person and courier are handed over in Delhi, hence POS shall be Delhi.

Question-2 [ICSI-P-J21-O-4A(ii)(d)-1]

Sudhir is relocating from Agra to Kolkata and avail the services of packers and movers in Agra. Determine POS.

Answer

As per section 12(8)(b) of IGST Act, POS of services by way of transportation of goods, including by mail or courier to a person other than a registered person, shall be the location at which such goods are handed over for their transportation.

Hence in the given case, Mr. Sudhir is unregistered person and goods courier are handed over in Agra for transportation. Hence POS shall be Agra.

Question-2A [ICSI-P-D22-2(a)(iii)-1]

Amit, a manager in a bank is transferred from Bareilly, Uttar Pradesh to Bhopal, Madhya Pradesh. Amit’s family is stationed in Kanpur, Uttar Pradesh. He hires Hari Carriers of Lucknow, Uttar Pradesh (registered in Uttar Pradesh), to transport his household goods from Kanpur to Bhopal.

Answer

As per section 12(8)(b) of IGST Act, POS of services by way of transportation of goods, including by mail or courier to a person other than a registered person, shall be the location at which such goods are handed over for their transportation.

Since in the given case, the recipient Amit an unregistered person, the place of supply is the location where goods are handed to Hari Carriers over for their transportation, i.e. Kanpur (Uttar Pradesh)

Question-2B [ICSI-P-D21-O-4(a)(iii)-1]

Rajiv, a bank manager, is transferred from Agra (UP) to Pune (Maharashtra). Rajiv’s family is stationed in Kanpur (UP). He hires sigma carrier of Agra (UP) registered in UP, to transport his household goods from Kanpur to Pune (Maharashtra).

Answer

As per section 12(8)(b) of IGST Act, POS of services by way of transportation of goods, including by mail or courier to a person other than a registered person, shall be the location at which such goods are handed over for their transportation.

The recipient being unregistered person, the place of supply is the location where goods are handed over for their transportation i.e. Kanpur, (UP).

12.9 POS of Passenger transportation service

Question-1 [ICSI-E-D20-66-1]

The place of supply (POS), in the case of passenger transportation services as defined in section 12(9) of the IGST Act, 2017 provided to a registered person shall be the ------

(A) location of service provider

(B) location of such registered person

(C) place where the passenger disembarks from the conveyance

(D) place where the passenger embarks on the conveyance

Answer

As per section 12(9) of IGST Act, the place of supply of passenger transportation service to a registered person, shall be the location of such person.

12.10 POS for service supplied on board a conveyance

Question-1 [ICAI-F-Jan21-2(a)(v)-1]

Mr. X, residing in Chennai, is travelling with an Indian Airline aircraft and is provided with movie-on-demand service for Rs.100 as on-board entertainment during Delhi-Chennai leg of a Bangkok-Delhi-Chennai flight.

Answer

As per section 12(10) of IGST Act, the place of supply of services on board an aircraft is the location of the first scheduled point of departure of that aircraft or flight for the journey. Hence POS shall be Bangkok.

Question-2 [ICSI-P-D21-O-4(a)(v)-1]

Mr. Sharma travelling from Delhi to Chennai in a flight. He desired to watch an English movie during the journey by making the necessary payments to the Airlines.

Answer

As per section 12(10) of IGST Act, the place of supply of services on board an aircraft is the location of the first scheduled point of departure of that aircraft or flight for the journey.

Hence POS shall be Delhi.

12.11 POS of telecommunication services

Question-1 [ICAI-F-Jan21-2(a)(iv)-1]

Mr. X, registered in Guwahati, has availed land-line services from BSNL. The telephone is installed in residential premises in Kolkata and the billing address is office of Mr. X in Guwahati.

Answer

As per section 12(11) of IGST Act, the place of supply of services by way of fixed telecommunication line is the location where the telecommunication line is installed for receipt of services.

In given case, telephone is installed in Kolkata, hence POS shall be Kolkata.

12.12 POS for Banking, financial or stock broking services

Question-1 [ICAI-F-Jan21-2(a)(viii)-1]

Mr. X, a registered person in Ranchi, Jharkhand, buys shares from a broker in Patna on NSE, Mumbai. Determine the place of supply of brokerage service. [S-12(12)]

Answer

As per section 12(12) of IGST Act, In case of banking and other financial services, including stock broking services to any person POS shall be the location of the recipient on the records of the supplier.

In the given case, Mr X is registered in ranchi, hence POS shall be Ranchi, (Jharkhand).

Question-2 [ICSI-E-J21-O-100-1]

Mrs. Mallick, an unregistered person, from Mumbai, has an account with a bank at Mumbai. She is on a vacation in Rajasthan and visits a bank for getting a demand draft made. The place of supply in such case shall be _________.

(A) Mumbai (B) Rajasthan (C) Mumbai and Rajasthan both (D) None of the above

Answer

As per section 12(12) of IGST Act, In case of banking and other financial services, including stock broking services to any person POS shall be the location of the recipient on the records of the supplier.

In the given case, Mrs. Mallick has an account in mumbai, hence POS shall be Mumbai.

Question-2A [ICSI-P-D18-3(a)(iv)-1]

D of Delhi has a savings bank account with HDFC Bank in Delhi. When he was in Mumbai for official tour, he gets a DD (Demand Draft) from HDFC Bank in Mumbai.

Answer

As per section 12(12) of IGST Act, in case of banking and other financial services, including stock broking services to any person POS shall be the location of the recipient on the records of the supplier.

In the given case, Mr. D has account in Delhi, hence POS shall be Delhi.

Question-2B [ICSI-P-D22-2(a)(iv)-1]

Baldev, a resident of Jaipur, opens his saving account in Jaipur branch of a nationalized Bank after undergoing the KYC process. He goes to Amritsar (Punjab) for some official work and withdraws money from Bank’s ATM in Amritsar thereby crossing his limit of free ATM withdrawals. Determine the place of supply.

Answer

As per section 12(12) of IGST Act, in case of banking and other financial services, including stock broking services to any person POS shall be the location of the recipient on the records of the supplier.

In the given case, Baldev has account in Jaipur, hence POS shall be Jaipur.