Is place of provision of service is place of receiver???

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Natasha Mourya (Querist)
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07 January 2015 I confused, When I came across a paragraph mentioned in a book, "Place of provision of service deemed to be the place of service receiver" Example: X of mumbai gives its service to Y of Chennai,but service is rendered in colombo,as service receiver place is chennai in this case service is taxable. As I know service rendered in non taxable territory(jammu & Kashmir & any other country outside India) is not chargeable to tax. but above example makes me confuse.
Plz help me out.

Guest

Guest (Expert)

07 January 2015 There are few rules given in the POP.This would be the case which falls in Rule-4 which is as below-:

Place of provision of performance based services.- The place of provision of following services shall be the location where the services are actually performed, namely:-

(a) services provided in respect of goods that are required to be made physically available by the recipient of service to the provider of service, or to a person acting on behalf of the provider of service, in order to provide the service:
Provided that when such services are provided from a remote location by way of electronic means the place of provision shall be the location where goods are situated at the time of provision of service:
Provided further that this sub-rule shall not apply in the case of a service provided in respect of goods that are temporarily imported into India for repairs, reconditioning or reengineering for re-export, subject to conditions as may be specified in this regard.
(b) services provided to an individual, represented either as the recipient of service or a person acting on behalf of the recipient, which require the physical presence of the receiver or the person acting on behalf of the receiver, with the provider for the provision of the service.

Guest

Guest (Expert)

07 January 2015 Sorry this case is specifically covered in Rule-8 of POP rules which is as below-:

Place of provision of services where provider and recipient are located in taxable territory.- Place of provision of a service, where the location of the provider of service as well as that of the recipient of service is in the taxable territory, shall be the location of the recipient of service.

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