1[Rule 6 - Place of supply of services relating to a leased circuit in more than one state [CorrespondingSection12(11)]
The supply of services
attributable to different States or Union territories, under sub section (11) of
section 12 of the said Act, in the case of supply of services relating to a
leased circuit where the leased circuit is installed 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 in the following manner, namely:-
(a) The number of points in a circuit shall be determined in the following
manner:
(i) in the case of a circuit between two points or places, the starting point or
place of the
circuit and the end point or place of the circuit will invariably constitute two
points;
(ii) any intermediate point or place in the circuit will also constitute a point
provided that
the benefit of the leased circuit is also available at that intermediate point;
(b) the supply of services shall be treated as made in each of the respective
States or Union
territories, in proportion to the number of points lying in the State or Union
territory.
Illustration 1: A company T installs a leased circuit between the Delhi and
Mumbai offices of a company C. The starting point of this circuit is in Delhi
and the end point of the circuit is in Mumbai. Hence one point of this circuit
is in Delhi and another in Maharashtra. The place of supply of this service is
in the Union territory of Delhi and the State of Maharashtra. The service shall
be deemed to have been provided in the ratio of 1:1 in the Union territory of
Delhi and the State of Maharashtra, respectively.
Illustration 2: A company T installs a leased circuit between the Chennai,
Bengaluru and Mysuru offices of a company C. The starting point of this circuit
is in Chennai and the end point of the circuit is in Mysuru. The circuit also
connects Bengaluru. Hence one point of this circuit is in Tamil Nadu and two
points in Karnataka. The place of supply of this service is in the States of
Tamil Nadu and Karnataka. The service shall be deemed to have been provided in
the ratio of 1:2 in the States of Tamil Nadu and Karnataka, respectively.
Illustration 3: A company T installs a leased circuit between the Kolkata, Patna
and Guwahati offices of a company C. There are 3 points in this circuit in
Kolkata, Patna and Guwahati. One point each of this circuit is, therefore, in
West Bengal, Bihar and Assam. The place of supply of this service is in the
States of West Bengal, Bihar and Assam. The service shall be deemed to have been
provided in the ratio of 1:1:1 in the States of West Bengal, Bihar and Assam,
respectively.]
1. Inserted Vide: Notification
No.04/2018-Integrated Tax dt.31/12/2018 [Para3]