Place of supply - Immovable Property
The Place of Supply for an immovable property is the location of the immovable property.
Suppose a road is constructed from Delhi to Mumbai covering multiple states. What will be the place of supply?
Where the immovable property is located in more than one State, the supply of service shall be treated as made in each of the States in proportion to the value for services separately collected or 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.
Place of Supply – Event
The place of supply of services provided for organizing an event, say, IPL cricket series which is held in multiple states.
In case of an event,
If the recipient of service is registered, the place of supply of services for organizing the event shall be the location of such person.
If the recipient is not registered, the place of supply shall be the place where event is held. Example:-Spectators who take tickets to watch the match (Unregistered Persons).
If the event is held in multiple states and a consolidated amount is charged for such services, the place of supply shall be taken as being in each state in proportion to the value of services so provided in each state.
Place of Supply – Mobile Connection
The location of supplier of mobile services cannot be the place of supply as the mobile companies are providing services in multiple states and many of these services are inter-state. The consumption principle will be broken if the location of supplier is taken as place of supply and all the revenue may go to a few states where the suppliers are located.
The place of supply for mobile connection would depend on whether the connection is on postpaid or prepaid basis.
· Postpaid connections:-The place of supply shall be the location of billing address of the recipient of service.
· Prepaid Connections:-The place of supply shall be the place where payment for such connection is received or such pre-paid vouchers are sold.
· Recharge is done through internet/e-payment:-The location of recipient of service on record shall be the taken as the place of service.
A person in Goa buys shares from a broker in Delhi on NSE (in Mumbai). What will be the place of supply?
The place of supply shall be the location of the recipient of services on the records of the supplier of services.
So Goa shall be the place of supply.