Place of Provision of Service Rule, 2012
Rule 1. Short
Title, Extent & Commencement
Rule 2. Definitions
Rule 3. Place
of Provision GENERALLY
Rule 4. Place
of Provision of PERFORMANCE BASED SERVICE
Rule 5. Place
of Provision of Services relating to IMMOVABLE PROPERTY
Rule 6. Place
of Provision of Services relating to EVENTS
Rule 7. Place
of Provision of Services Provided at more than location
Rule 8. Place
of Provision of Services where both SP ans Sp are located in
taxable territory.
Rule 9. Place
of Provision of SPECIFIED SERVICES
Rule 10. Place
of Provision of Goods Transportation Service
Rule 11. Place
of Provision of Passenger Transportation Service
Rule 12. Place of Provision of Services Provided on Board a Conveyance
Rule 13. Power
to notify description of service or circumstances for certain
purposes
Rule 14. Order
of application of rules.
Rule 3 General Rule
In General Rule:
Place of Provision of Service: Location of the service receiver.
Provided: if the location of service receiver is not available in ordinary course of business then: Place of Service Provider.
Logic: Due to destination based consumption tax concept.
Legal Wording
Place of provision generally.- 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.
Rule 2 (h) “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):
(i) the location of his business establishment; or
(ii) where the services are provided from a place other than the businesse stablishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or
(iii) 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
(iv) in the absence of such places, the usual place of residence of the service provider.
Rule 2 (i) “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):
(i) the location of his business establishment; or
(ii) 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
(iii) 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
(iv) In the absence of such places, the usual place of residence of the recipient of service.
Explanation:-. For the purposes of clauses (h) and (i), “usual place of residence” in case of a body corporate means the place where it is incorporated or otherwise legally constituted.
In case of following services POPS will be - Where the services are actually performed
A) In case of Service provided i.r.o. Goods & Physical Presence required is essential for Service providing :-
Place where Service is Actually performed
For Example:- Repair work of an movable property like Computer or AC Repair Work. POPS is the place where the service is actually performed either at location of Service receiver or Service Provider.
Provided: If Services have been provided by remote location through electronic means i.e. through internet then POPS will be the Place where the goods are situated at the time of provision of service
Provided Further That: This Rule is not applicable in case of Goods imported in India on temporary basis for repair or reconditioning.
B) In case of Service provided to Individual & Physical Presence of receiver required :- Place of the service Provider.
Legal Wording
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, which 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.
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