Pops,2012 presentation
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The document provides details on the notification no. 28/2012-st, which became effective on July 1, 2012, outlining the taxation of services provided in India, specifically emphasizing the rules for determining the place of provision of services. It describes the implications for service providers and recipients in taxable territories, including cross-border situations and services related to immovable property, performance-based services, and transportation. The document also specifies how to address cases of double taxation and the responsibilities of the central government in notifying service provisions.
![3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-10 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 goods.
[Provided that the place of provision of
services of goods transport agency shall be
the location of the person liable to pay tax.]
Example:-
ABC Ltd is manufacturer of motor vehicles who
transport goods to a company in Canada
through Aircrafts. The place of provision will be
outside India. (i.e. Canada) hence non taxable.](https://image.slidesharecdn.com/pops2012-presentation-151217083800/85/Pops-2012-presentation-14-320.jpg)
Pops,2012 presentation
- 1. Notification No. 28/2012-ST dated 20-06-2012. Came into force on 1st day of July,2012.
- 3. As per provision of section 66B, a service is taxable only when it is provided or agreed to be provided in the taxable territory. oIt is relevant to determine the place where a service shall be deemed to be provided. o(i.e. it is in taxable territory or not). oTo avoid double taxation. oTo ensure that no service is left untaxed. Taxable territory means territory to which the provisions of Chapter V of Finance Act, 1994 apply. (i.e. Whole of India except J&K.)
- 4. The persons for whom these rules are significant (i.e. meant) are:- 1. Persons who deal in cross border services.(Exporters and importers of service) 2. Persons providing services in or receiving services from the State of Jammu & Kashmir. 3. Persons operating within India from multiple locations, without having centralized registration. 4. Persons providing services in or receiving services from Special Economic Zone.
- 5. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-3 Place of Provision Generally • The place of provision of a service shall be the location of the recipient of service. • Provided that the location of service receiver is not available in the ordinary course of business, the place of provision shall be the location of the service provider
- 6. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule 4- Performance Based Services • Services provided in relation to goods that are required to be made physically available. or •Services which require physical presence of receiver or person acting on behalf of receiver. Location where service are performed. •Provided that when such services are provided from a remote location by way of electronic means :- Location where goods are situated at the time of provision of services.
- 7. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule 4- Performance Based Services •Note- Rule shall not apply in case of service provided in respect of goods that are temporarily imported into India for repairs, reconditioning etc. Example : Miss A. used services of cosmetic or plastic surgery, from Miss B. who is a beautician at her(i.e. Miss A) premises, thus place of provision shall be the place where service is performed i.e. the premises of Miss. A in this case.
- 8. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-5 Services relating to Immovable property Services provided directly in relation to immovable property :- Location where immovable property is located or intended to located. Example : Services supplied in the course of construction, reconstruction, alteration or maintenance, of any building or civil engineering work. Services of real estate agent, auctioneers, architects, engineers and similar experts or professional people, relating to land. This includes the management, survey of valuation of property.
- 9. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-6 Services relating to events Services provided by way of admission to, or organization of, or 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, the place of provision shall be the place where event is held. Example : An Indian fashion design firm hosts a show at Toronto, Canada. The firm receives the services of a Canadian event organizer. Any service provided in relation to this event, including the right to entry, will be non-taxable.
- 10. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-7 Services provided at more than one location Services specified under aforesaid rules i.e. Rule 4, 5, or 6 if provided at more than one location, then the place of provision shall be :- the location in the taxable territory where greatest proportion of service is provided.
- 11. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-8 Service Provider and Service receiver located in the taxable territory This rule covers situations where the place of provision of a service provided in the taxable territory may be determinable to be outside the taxable territory by applying one of the earlier Rules i.e. Rule 4 to 6 but the service Provider and Service Recipient are located in the taxable territory. In this case, place of provision shall be the location of Recipient of Services.
- 12. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Examples to Rule-8 • A helicopter of Pawan Hans Ltd (India based) develops a technical snag in J&K. Engineers are deputed by Hindustan Aeronautics Ltd, Bangalore, to undertake repairs at the site in J&K. The place of provision in this case shall be • the location of recipient i.e. India in this case.
- 13. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-9 Specified Services Following Services are covered under this: a) Services by a banking company, or a financial institution, or a non-banking financial company, to account holders. b) Online information and database access or retrieval services. c) Intermediary services. d) Services consisting of hiring of Means of Transport (other than aircraft and vessels) up to period of one month. The place of provision shall be the location service provider.
- 14. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-10 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 goods. [Provided that the place of provision of services of goods transport agency shall be the location of the person liable to pay tax.] Example:- ABC Ltd is manufacturer of motor vehicles who transport goods to a company in Canada through Aircrafts. The place of provision will be outside India. (i.e. Canada) hence non taxable.
- 15. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-11 Passenger Transportation Service The place of provision shall be the place where the passenger embarks on a conveyance for continuous journey. Example:- Mr. A receives the services of Mr. B, an air travel agent and books two tickets. One ticket was from Delhi to Canada and the other from Canada to Delhi. The place of provision for 1st ticket will be Delhi, hence taxable and for the 2nd is Canada, hence non taxable.
- 16. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-12 Services Provided on board a conveyance • 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. • The place of provision shall be the first scheduled point of departure of that conveyance for the journey. • Example:- A movie on demand is provided as on board entertainment during the Kolkata-Delhi leg of a Bangkok- Kolkata-Delhi flight to the travelers, the place of provision of this service will be Bangkok which is outside taxable territory, hence not liable to tax.
- 17. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-13 Power to notify description of services In order to prevent double taxation or non- taxation of the provision of a service, or for the uniform application of rules, the Central Government shall have the power to notify any description of services or circumstances in which the place of provision shall be : The place of effective use and enjoyment of a service.
- 18. 3. Place of Provision Generally 4. Performance based services 5. Service relating to Immovable Property 8. Service provider and receiver located in taxable territory. 7.Service provided at more than one location 9. Specified Services 6.Service relating to events 10. Goods transportation service 13. Power to notify description of services 14. Order of Application of Rules 12. Service provided on board a conveyance 11. Passengers transportation services Rule-14 Order of application of rules • Where the provision of a service is, prima facie, determinable in terms of more than one rule. • The place of provision shall be in accordance with the rule that occurs later among the rules that merit equal consideration.
- 19. Thank you