Understanding Place of Supply in Goods and Services - Varsha Lund
Explore the concept of place of supply in goods and services with examples of scenarios involving movement or lack thereof, assembly or installation at site, and supply on board a conveyance. Gain insights into determining the location for supply based on various circumstances.
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PLACE OF SUPPLY CA VARSHA LUND
PLACE OF SUPPLY Goods Services CA Varsha Lund
PLACE OF SUPPLY OF GOODS CA Varsha Lund
WHERE SUPPLY INVOLVES MOVEMENT OF GOODS Provision Goods Where the supply involves movement of goods whether by the supplier or the recipient or by any other person , the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient. Supply of goods or Service? Yes Example Mr. M of Mumbai sells 10 air conditioners to Mr. S of Gujarat to be delivered at Mr. S s showroom in Gujarat. What is the place of supply? Does it involve movement? Ans: Place of supply- Gujarat (Location where movement of goods terminates) CA Varsha Lund
WHERE SUPPLY DOES NOT INVOLVE MOVEMENT OF GOODS Provision Goods Where the supply of goods does not involve movement of goods whether by the supplier or the recipient, the place of supply of such goods shall be the location of the goods at the time of delivery to the recipient. Supply of goods or Service? No Example Mr. M of Gujarat purchases a new office with pre- installed furniture and fixtures at Mumbai. What is the place of supply for the furniture and fixture purchased? Does it involve movement? Ans: Place of supply- Mumbai (Location of goods at the time of delivery) CA Varsha Lund
SUPPLY INVOLVING ASSEMBLY / INSTALLATION AT SITE Goods Provision Where the goods are assembled or installed at site , the place of supply shall be the location of such installation or assembly. Supply of goods or Service? Goods are installed/asse mbled Example Mr. M of Gujarat purchases a machine from Mr. B of New Delhi to be installed in his factory at Mumbai. What is the place of supply? Which situation? Ans: Place of supply- Mumbai (Location where goods are installed/assembled) CA Varsha Lund
GOODS SUPPLIED ON BOARD A CONVEYANCE Provision Goods Where the goods are supplied on board a conveyance including a vessel , an aircraft, a train or a motor vehicle , the place of supply shall be the location at which the goods are taken on board. Goods taken on board a conveyance Example Supply of goods or Service? Mr. M of Mumbai boards a Mumbai Delhi flight and supplies canned aerated drinks to passengers on the train. The goods were taken on board at Mumbai. What is the place of supply? Which situation? Ans: Place of supply- Mumbai (Location where goods are taken on board a conveyance) CA Varsha Lund
GOODS DELIVERED BY SUPPLIER TO RECIPIENT ON DIRECTION OF A THIRD PERSON (BILL TO SHIP TO- MODEL) Provision Where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person , whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person. CA Varsha Lund
BILL TO SHIP TO MODEL Recipient (Third Person) Bill To Recipient (Third person ) instructed supplier to deliver the goods to another person Supplier Goods are delivered Ship To CA Varsha Lund
GOODS DELIVERED BY SUPPLIER TO RECIPIENT ON DIRECTION OF A THIRD PERSON (BILL TO SHIP TO- MODEL) Example Mr. M of Mumbai enters into an agreement to sell goods to Mr. B of Uttar Pradesh. Mr. B requests Mr. M to deliver the goods to Mr. G of Gujarat . What is the place of supply? Goods are delivered on the direction of third person Goods Supply of goods or Service? Which situation? CA Varsha Lund
Mr. B Analysis (Uttar Pradesh) Recipient (Third Person) Bill To Mr.M (Mumbai) Supplier Mr. G (Gujarat) Ship To Goods are delivered CA Varsha Lund
GOODS DELIVERED BY SUPPLIER TO RECIPIENT ON DIRECTION OF A THIRD PERSON (BILL TO SHIP TO- MODEL) Example Mr. M of Mumbai enters into an agreement to sell goods to Mr. B of Uttar Pradesh. Mr. B requests Mr. M to deliver the goods to Mr. G of Gujarat . What is the place of supply? Ans :Place of supply for transaction between Mr. M and Mr. B- Uttar Pradesh (Location of the third person on whose direction the goods were supplied. CA Varsha Lund
GOODS DELIVERED BY SUPPLIER TO RECIPIENT ON DIRECTION OF A THIRD PERSON (BILL TO SHIP TO- MODEL) The situation also involves another supply between Mr. B and Mr. G. Since the said case falls under the category where supply involves movement of goods , the place of supply will be Gujarat i.e where the movement of goods terminate. CA Varsha Lund
SUMMARY Sr. No. 1 Situation Place of Supply Supply involves movement of goods Location where movement terminates Location of goods at the time of delivery to the recipient Location where goods are assembled or installed Location where goods are taken on board the conveyance. Location of the third person on whose direction the goods are supplied. (Bill to) 2 Supply does not involve movement of goods 3 Goods assembled or installed at site 4 Goods supplied on board a conveyance like vessel, aircraft, train etc. Goods supplied by supplier to recipient on the direction of a third person. (Bill to Ship to model) 5 CA Varsha Lund
