Place of provision of service

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Ashish Pal Singh

student

31 Points Posted on 09 August 2014

Hello evry1,

My client(Co.) is in the business of providing Movers & Packers Service. Suppose Mr. Ram approaches them to shift his household from India to Australia. They do pack the goods and move the same to port of India. All custom formalities are done by them. Also they appoint freight forwarder to move the same from Indian port to Australian port. We raise a single consolidated Invoice to Customer for all the services. Now my question is that whether Rule10 of POPS should be applied(Destination of goods) destination is Australia, hence not Taxable or should it covered under bundled service and taxed the entire amount.

Replies (2)

CA Manoj Gautam

iBanking

32 Points Posted on 09 August 2014

Hi,

Your client will be covered under Rule 10, which is specifically for transportation of goods. Movers and Packers services, as per the amendment were classifed under cargo handling services. As these goods are to be transported outside, it will be treated as export cargo so rule 4 will not be applicable. The invoice is consolidated, it will be treated as natural bundle of services. Let other experts confirm this as well!!