Place of provision of service rules,2012 under service tax

By | November 1, 2013

Place of provision of service rules,2012 under service tax

Place of provisiongenerally the place of provision of a service shall be the location of the recipient of service.

provided that in case the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service.

 Place of provision of performance based services.- The place of provision of following services shall be the location where the services are actually performed, namely:-

(a)  Services provided in respect of goods that are required to be made physically available by the recipient of service to the provider of service, or to a person acting on behalf of the provider of service, in order to provide the service:

Provided that when such services are provided from a remote location by way of electronic means the place of provision shall be the location where goods are situated at the time of provision of service:

Provided further that this sub-rule shall not apply in the case of a service provided in respect of goods that are temporarily imported into India for repairs, reconditioning or reengineering for re-export, subject to conditions as may be specified in this regard.

(b)  Services provided to an individual, represented either as the recipient of service or a person acting on behalf of the recipient, who require the physical presence of the receiver or the person acting on behalf of the receiver, with the provider for the provision of the service.

Place of provision of services relating to immovable property.- The place of provision of services provided directly in relation to an immovable property, including services provided in this regard by experts and estate agents, provision of hotel accommodation by a hotel, inn, guest house, club or campsite, by whatever, name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including architects or interior decorators, shall be the place where the immovable property is located or intended to be located.

Place of provision of services relating to events.- The place of provision of services provided by way of admission to, or organization of, a cultural, artistic, sporting, scientific, educational, or entertainment event, or a celebration, conference, fair, exhibition, or similar events, and of services ancillary to such admission, shall be the place where the event is actually held.

Place of provision of services provided at more than one location.-Where any service referred to in rules 4, 5, or 6 is provided at more than one location, including a location in the taxable territory, its place of provision shall be the location in the taxable territory where the greatest proportion of the service is provided.

 Place of provision of services where provider and recipient are located in taxable territory.- Place of provision of a service, where the location of the provider of service as well as that of the recipient of service is in the taxable territory, shall be the location of the recipient of service.

   Place of provision of specified services.- The place of provision of following services shall be the location of the service provider:-

  • Services provided by a banking company, or a financial institution, or a non-banking financial company, to account holders;
  • Online information and database access or retrieval services;
  • Intermediary services;
  • Service consisting of hiring of means of transport, upto a period of one month.

Place of provision of goods transportation services.- The place of provision of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of the goods:

Provided that the place of provision of services of goods transportation agency shall be the location of the person liable to pay tax

 Place of provision of passenger transportation service.- The place of provision in respect of a passenger transportation service shall be the place where the passenger embarks on the conveyance for a continuous journey.

 Place of provision of services provided on board a conveyance.- Place of provision of services provided on board a conveyance during the course of a passenger transport operation, including services intended to be wholly or substantially consumed while on board, shall be the first scheduled point of departure of that conveyance for the journey.

Order of application of rules.- Notwithstanding anything stated in any rule, where the provision of a service is, prima facie, determinable in terms of more than one rule, it shall be determined in accordance with the rule that occurs later among the rules that merit equal consideration.

Location of the service provider” means-

a)     where the service provider has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;

b)    where the service provider is not covered under sub-clause (a):

  • the location of his business establishment; or
  • where the services are provided from a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or
  • where services are provided from more than one establishment, whether business or fixed, the establishment most directly concerned with the provision of the service; and
  • in the absence of such places, the usual place of residence of the service provider.

Location of the service receiver” means

a)     where the recipient of service has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;

b)    where the recipient of service is not covered under sub-clause (a):

  • the location of his business establishment; or
  • where services are used at a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or
  • where services are used at more than one establishment, whether business or fixed, the establishment most directly concerned with the use of the service; and
  • in the absence of such places, the usual place of residence of the recipient of service.

 

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