1[Rule 5 - Place of supply of services relating to Organisation of event for unregistered person in more than one state [Corresponding section 12(7)]
The supply of services
attributable to different States or Union territories, under sub-section (7) of
section 12 of the said Act, in the case of-
(a) services provided by way of organisation of a cultural, artistic, sporting,
scientific, educational or entertainment event , including supply of services in
relation to a conference, fair exhibition, celebration or similar events; or
(b) services ancillary to the organisation of any such events or assigning of
sponsorship to such events ,
where the services are supplied to a person other than a registered person, the
event is held in India in more than one State or Union territory and a
consolidated amount is charged for supply of such services, shall be taken as
being in each of the respective States or Union territories, and in the absence
of any contract or agreement between the supplier of service and recipient of
services for separately collecting or determining the value of the services in
each such State or Union territory, as the case maybe, shall be determined by
application of the generally accepted accounting principles.
Illustration: An event management company E has to organise some promotional
events in States S1 and S2 for a recipient R. 3 events are to be organised in S1
and 2 in S2. They charge a consolidated amount of Rs.10,00,000from R. The place
of supply of this service is in both the States S1 and S2. Say the proportion
arrived at by the application of generally accepted accounting principles is
3:2. The service shall be deemed to have been provided in the ratio 3:2 in S1
and S2 respectively. The value of services provided will thus be apportioned as
Rs. 6,00,000/- in S1 and Rs. 4,00,000/- in S2 .]
1. Inserted Vide: Notification
No.04/2018-Integrated Tax dt.31/12/2018 [Para3]