Friday, May 17, 2013

Place of Provision of Service Rule, 2012




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.
Explanation 2:-. For the purpose of clause (i), in the case of telecommunication service, the usual place of residence shall be the billing address.


Rule 4 Performance Based Service


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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