Case Studies - 2

SECTION : Place of Supply of Goods & Service

DESCRIPTION
  • Place of supply – Goods / Services on Travel

    In respect of goods or services supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle, there is separate provisions for goods and services.


    Goods:-The place of supply shall be the location at which such goods are taken on board.

    Services:-The place of supply shall be the location of the first scheduled point of departure of that conveyance for the journey.


    Place of supply – Journey

    Person travels from Mumbai to Delhi and back to Mumbai. What will be the place of supply?

    ·        If the person is registered, the place of supply shall be the location of recipient.

    ·        If the person is not registered, the place of supply for the forward journey from Mumbai to Delhi shall be Mumbai, the place where he embarks. However, for the return journey, the place of supply shall be Delhi as the return journey has to be treated as separate journey.

    Place of Supply – Travel Pass from Air India

    Suppose a ticket/ pass for anywhere travel in India is issued by M/s Air India to a person. What will be the place of supply?

    In the above case, the place of embarkation will not be available at the time of issue of invoice as the right to passage is for future use. Accordingly, place of supply cannot be the place of embarkation. In such cases, the default rule shall apply.


    Place of Supply – Bank Services

    A person from Mumbai goes to Kullu-Manali and takes some services from ICICI Bank in Manali. What will be the place of supply?

    If the service is not linked to the account of person, place of supply shall be Kullu i.e. the location of the supplier of services.

    However if the service is linked to the account of the person, the place of supply shall be Mumbai, the location of recipient on the records of the supplier.


    Place of Supply – Travel Insurance

    A person from Gurgaon travels by Air India flight from Mumbai to Delhi and gets his travel insurance done in Mumbai. What will be the place of supply?

    The location of the recipient of services on the records of the supplier of insurance services shall be the place of supply. So Gurgaon shall be the place of supply. 


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