Royal blue resort goa is a 4 star resort situated in goa. It has a event division which conducts training, conferences.
During 17-18 they conducted a conference for Infosys Bangalore for training its employees. Total value of transaction is Rs 20 lacs which includes hall rent, accomodation and food.
Tariff of room at the resort is Rs 6000 per night.
q1) what is the nature of supply
2)is it a inter state or intra state supply
3)what is the tax rate applicable
My views
1)it is a composite supply and needs to be taxed at the rate applicable for renting of premises for conference. Seperate billing woudnt take away the character of the transaction.
2)it is a inter state supply, as in case of conferences n training programs organised, the place of provision of supply shall be the address of the registered person. Moreover, though the accomodation n restaurant service is included, it is a composite supply and the entire supply wud be taxed as a inter state supply.
3)gst @ 18% would apply for the entire transaction, though 28% applies for the accomodation(being above 28%) as the principal transaction.
regards,
Jairam
CAclubindia
