Presentation on Place of Provision TAXPERT PROFESSIONALS

1. Place of Provision of Services Rules, 2012
BY:
CA. VINAY BHUSHAN
ASSOCIATE DIRECTOR
TAXPERT PROFESSIONALS PRIVATE LIMITED

2. Relevance of the ‘Place of Provision
of Services Rules, 2012
• Specify the manner to determine the taxing jurisdiction
for a service.
• The taxability of a service will be determined based on
the “place of its provision”
• These rules are primarily meant for persons who deal in
cross-border services
• service providers operating within India from multiple
locations, without having centralized registration

3. Rule 3 of the ‘Place of Provision of
Services Rules, 2012 (Main Rule)
• Generally, Place of recipient of service.
• Main rule is applied when none of the other later rules apply.
Logic: The principal effect of the Main Rule is that:-
A. Where the location of receiver of a service is in the taxable territory, such
service will be deemed to be provided in the taxable territory and service tax
will be payable.
B. However if the receiver is located outside the taxable territory, no service tax
will be payable on the said service. (Export)

4. Who is the service receiver???
Condition 1:- the person who is legally entitled to
receive a service
&
Condition 2:- obliged to make payment
Proviso Place of provision where the location of receiver
is not ascertainable in the ordinary course
of business :- location of the service
provider.

5. Rule 4, 5, 6 - of the ‘Place of
Provision of Services Rules, 2012
Rule 4 - Performance based Services
• Services that are related to goods, and which require such goods to be
made available to the service provider so that the service can be rendered.
Rule 5- Location of Immovable Property
• where the immovable property (land or building) is located, irrespective of
where the provider or receiver is located.
Rule 6- Services relating to Events
• the place where the event is held.

6. Rule 7, 8, of the ‘Place of Provision of
Services Rules, 2012
Rule 7- Part performance of a service at different locations
• Situations where the actual performance of a service is at more than one
location, and occasionally one (or more) such locations may be outside the
taxable territory.
Rule 8- Services where the Provider as well as Receiver is located in Taxable
Territory
• location of the receiver

7. Rule 9 of the ‘Place of Provision of
Services Rules, 2012
Rule 9- Specified services- Place of provision is location of the service provider
1. Services provided by a banking company, or a financial company, or a non-banking
financial company to account holders;
2. Online information and database access or retrieval services;
3. Intermediary services;
4. Service consisting of hiring of means of transport, up to a period of one month.

8. Rule 10, 11, 12 & 13 of the ‘Place of
Provision of Services Rules, 2012
Rule 10- Place of Provision of a service of transportation of goods
• place of destination of goods,
Rule 11- Passenger Transportation Services
• place where the passenger embarks on the conveyance for a continuous journey
Rule 12- Services provided on board conveyances
• point of departure of that conveyance for the journey
Rule 13- Power to notify services or circumstances

9. How to apply “Place of Provision of
Services Rules, 2012”
For determining the taxability of a service, therefore, one needs to ask the following
questions sequentially:-
1.Which rule applies to the service provided specifically? In case more than one rules
apply equally, which of these come later in the order given in the rules?
2.What is the place of provision of the service in terms of the above rule?
3.Is the place of provision in taxable territory? If yes, tax will be payable. If not, tax will
not be payable.

10. THANK YOU
For Further information
get in touch with US at
vinay@taxpertpro.com
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