Place of supply of service

Page no : 2

manaspani (finance mgr) (16 Points)
Replied 19 July 2017

Dear all it is AMC to customer ,where capital goods is located at Karnataka , it seems customer interested taking input tax credit of IGST so he is insisting billing on TN Address . to my mind service is consumed in Karnataka and place of supply should be Karnataka . pls correct me if I am wrong .

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manaspani (finance mgr) (16 Points)
Replied 19 July 2017

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 19 July 2017

@ manaspani....charge chat/sgst...as place of supply is in Karnataka.....even if your customer demands invoice at usa or even at Mars...

1 Like

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 19 July 2017

Dear Sir.,
I said above the same. He ll be issue CGST / SGST invoice.
Also i said in problems of IGST invoice that's all....

manaspani (finance mgr) (16 Points)
Replied 19 July 2017

sir thanks for your reply . can I have your feedback when this is done at the instruction of principal location of principal in different state billing will be done on principal is that IGST is OK for this type of transaction

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CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 19 July 2017

@ manaspani....I quite not understood this problem....but I will tell you basic rule......when you raise bill to anybody just forget where he is registered........just see where is the place of supply of service....this is given in section 12 of igst act.....if the place of supply is in your state than charge cgst/sgst, otherwise charge igst.....

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 19 July 2017

@ rajapm.....you said something about that if scruitny happens then it will be problem.....what problem are you referring to??

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 19 July 2017

The supplier is Karnataka and the Supply is alsoKarnataka also customer branch in Karnataka. But, Supplier want bill in his TN address.
In case the supplier ll be issue IGST invoice for his customer satisfaction.
Then in future any checking by GST AO. At the time any documents found the transaction based worksheets, Consumable bills and etc., for the work base. The AO ll be charge penalty and some other charges., So, I said it's in future problems

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 19 July 2017

but there is no need to charge gst....even consumer will not ask him to charge gst.....the process will be as follow.........supplier issue bill to tn ho and charge cgst/sgst....now tn ho will have to register itself as isd....now he can transfer this credit to his Karnataka branch as igst....hence Karnataka branch will be able to take itc credit......for detail read section 20 and 49(5) and rule 39 of igst

Avinash Dewan (64 Points)
Replied 20 July 2017

Place of supply matters in this case. The place of supply is Karnataka. Since both supplier and recipient are registered in Karnataka, it'll be an intrastate supply and accordingly CGST & SGST will be levied.

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Avinash Dewan (64 Points)
Replied 20 July 2017

Tax invoice may be issued to Tamil Nadu Office but the place is supply is to be mentioned as Karnataka in this invoice giving the Karnataka
Gst Number of the recipient.

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 20 July 2017

@ avinash...may you refer me the section or rule which refers that gstin of tn branch of customer is necessary?

Rajya Lakshmi (Management Trainee) (57 Points)
Replied 20 July 2017

Sir,

In case of Man power supply Service (security agency), registration will be only in a single State and they will be supplying security services in various states. In those cases what will be the Tax to be charged?

If the answer is IGST then waht is the relevance of Place of Supply?