Siddharth Mane (Tax Consultant) (283 Points)
10 January 2020Namaskar ev1, My client's business is supplying boats in projects operated in seas. He is a Mumbaikar, his client is in Delhi, and supllying boats in sea of Mumbai. Now d twist is whether we should charge CGST & SGST in Invoice or IGST. This transaction is Intra-satate or Inter-state ?? Please advice ASAP
CMA M.Keerthi chandra
(C.A FINAL STUDENT AND QUALIFIED C.M.A)
(561 Points)
Replied 10 January 2020
As per the provisions of Section 10 (1) , place of supply is the location of goods at which the movement of such goods terminates, in such case it shall be intra state supply since the goods are in sea of Mumbai( with in the definition of India).
As per Section 10 (2) if the goods are delivered to recipient or other person' on direction of the third person , then the place of supply shall be the principal place of business of such third person.If he is in another state , transaction shall be treated as Inter state Transaction.
Siddharth Mane
(Tax Consultant)
(283 Points)
Replied 10 January 2020
dEAR Keerti, This is not goods, it is services of supplying boats on hire basis.
CA J.Jayaprakash
(Senior Officer (Finance))
(273 Points)
Replied 10 January 2020
As per Section 12(3), in case Service by way of grant of rights to use Boats / Vessels, Location of the Boat / Vessel is the Place of Supply.
Hence the Place of Supply in your case is Mumbai and the transaction is Intra-State Transaction. You have to charges CGST and SGST.
CMA M.Keerthi chandra
(C.A FINAL STUDENT AND QUALIFIED C.M.A)
(561 Points)
Replied 10 January 2020
Yes agree with above view.
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