1[Rule 7 - Place of supply of services relating to services supplied in respect of goods\individual which are required to be made physically available in more than one state where supplier or recipient is outside India [Corresponding Section13(7)]
The supply of services
attributable to different States or Union territories, under sub-section (7) of
section 13 of the said Act, in the case of services supplied in respect of goods
which are required to be made physically available by the recipient of services
to the supplier of services, or to a person acting on behalf of the supplier of
services, or in the case of services supplied to an individual, represented
either as the recipient of services or a person acting on behalf of the
recipient, which require the physical presence of the recipient or the person
acting on his behalf, where the location of the supplier of services or the
location of the recipient of services is outside India, and where such services
are supplied in more than one State or Union territory, shall be taken as being
in each of the respective States or Union territories, and the proportion of
value attributable to each such State and Union territory 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:-
(i) in the case of services supplied on the same goods, by equally dividing the
value of the
service in each of the States and Union territories where the service is
performed;
(ii) in the case of services supplied on different goods, by taking the ratio of
the invoice value
of goods in each of the States and Union territories, on which service is
performed, as the
ratio of the value of the service performed in each State or Union territory;
(iii) in the case of services supplied to individuals, by applying the generally
accepted
accounting principles.
Illustration-1: A company C which is located in Kolkata is providing the
services of testing of a dredging machine and the testing service on the machine
is carried out in Orissa and Andhra Pradesh. The place of supply is in Orissa
and Andhra Pradesh and the value of the service in Orissa and Andhra Pradesh
will be ascertained by dividing the value of the service equally between these
two States.
Illustration-2: A company C which is located in Delhi is providing the service
of servicing of two cars belonging to Mr. X. One car is of manufacturer J and is
located in Delhi and is serviced by its Delhi workshop. The other car is of
manufacturer A and is located in Gurugram and is serviced by its Gurugram
workshop . The value of service attributable to the Union Territory of Delhi and
the State of Haryana respectively shall be calculated by applying the ratio of
the invoice value of car J and the invoice value of car A, to the total value of
the service.
Illustration-3: A makeup artist M has to provide make up services to an actor A.
A is shooting some scenes in Mumbai and some scenes in Goa. M provides the
makeup services in Mumbai and Goa. The services are provided in Maharashtra and
Goa and the value of the service in Maharashtra and Goa will be ascertained by
applying the generally accepted accounting principles.]
1. Inserted Vide: Notification
No.04/2018-Integrated Tax dt.31/12/2018 [Para3]