Place of Provision of Services Rules, 2012 which is notified by Notification No. 28/2012-ST dated 20-06-2012. contents- Relevance of POPS Rules,2012. Significance of POPS Rules,2012. Rules.

1. Notification No. 28/2012-ST dated 20-06-2012.
Came into force on 1st day of July,2012.

3. As per provision of
section 66B, a service
is taxable only when it
is provided or agreed
to be provided in the
taxable territory.
oIt is relevant to determine the place where a
service shall be deemed to be provided.
o(i.e. it is in taxable territory or not).
oTo avoid double taxation.
oTo ensure that no service is left untaxed.
Taxable territory means territory to which the provisions of Chapter
V of Finance Act, 1994 apply. (i.e. Whole of India except J&K.)

4.  The persons for whom these rules are significant (i.e. meant) are:-
1. Persons who deal in cross border services.(Exporters and importers of
service)
2. Persons providing services in or receiving services from the State of
Jammu & Kashmir.
3. Persons operating within India from multiple locations, without having
centralized registration.
4. Persons providing services in or receiving services from Special
Economic Zone.

5. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-3 Place of Provision Generally
• The place of provision of a service shall be
the location of the recipient of service.
• Provided that the location of service receiver
is not available in the ordinary course of
business, the place of provision shall be the
location of the service provider

6. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule 4- Performance Based Services
• Services provided in relation to goods that
are required to be made physically available.
or
•Services which require physical presence of
receiver or person acting on behalf of
receiver.
Location where service are performed.
•Provided that when such services are
provided from a remote location by way of
electronic means :- Location where goods are
situated at the time of provision of services.

7. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule 4- Performance Based Services
•Note- Rule shall not apply in case of service
provided in respect of goods that are
temporarily imported into India for repairs,
reconditioning etc.
Example :
Miss A. used services of cosmetic or
plastic surgery, from Miss B. who is a
beautician at her(i.e. Miss A) premises,
thus place of provision shall be the
place where service is performed i.e.
the premises of Miss. A in this case.

8. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-5 Services relating to Immovable property
Services provided directly in relation to
immovable property :- Location where
immovable property is located or intended to
located.
Example :
 Services supplied in the course of construction,
reconstruction, alteration or maintenance, of
any building or civil engineering work.
 Services of real estate agent, auctioneers,
architects, engineers and similar experts or
professional people, relating to land. This
includes the management, survey of valuation
of property.

9. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-6 Services relating to events
Services provided by way of admission to, or
organization of, or a cultural, artistic,
sporting, scientific, educational, or
entertainment event, or a celebration,
conference, fair, exhibition, or similar
events, and of services ancillary to such
admission, the place of provision shall be the
place where event is held.
Example :
An Indian fashion design firm hosts a show at
Toronto, Canada. The firm receives the services
of a Canadian event organizer. Any service
provided in relation to this event, including the
right to entry, will be non-taxable.

10. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-7 Services provided at more than
one location
Services specified under aforesaid rules
i.e. Rule 4, 5, or 6 if provided at more
than one location, then the place of
provision shall be :-
the location in the taxable territory
where greatest proportion of service is
provided.

11. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-8 Service Provider and Service
receiver located in the taxable territory
This rule covers situations where the place
of provision of a service provided in the
taxable territory may be determinable to
be outside the taxable territory by applying
one of the earlier Rules i.e. Rule 4 to 6 but
the service Provider and Service Recipient
are located in the taxable territory.
In this case, place of provision shall be the
location of Recipient of Services.

12. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Examples to Rule-8
• A helicopter of Pawan Hans Ltd (India
based) develops a technical snag in
J&K. Engineers are deputed by
Hindustan Aeronautics Ltd, Bangalore,
to undertake repairs at the site in J&K.
The place of provision in this case
shall be
• the location of recipient i.e. India in
this case.

13. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-9 Specified Services
 Following Services are covered under this:
a) Services by a banking company, or a
financial institution, or a non-banking
financial company, to account holders.
b) Online information and database access
or retrieval services.
c) Intermediary services.
d) Services consisting of hiring of Means of
Transport (other than aircraft and vessels)
up to period of one month.
 The place of provision shall be the location
service provider.

14. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-10 Goods Transportation Services
The place of provision of services of
transportation of goods, other than by way
of mail or courier shall be the place of
destination of goods.
[Provided that the place of provision of
services of goods transport agency shall be
the location of the person liable to pay tax.]
Example:-
ABC Ltd is manufacturer of motor vehicles who
transport goods to a company in Canada
through Aircrafts. The place of provision will be
outside India. (i.e. Canada) hence non taxable.

15. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-11 Passenger Transportation Service
 The place of provision shall be the place
where the passenger embarks on a
conveyance for continuous journey.
 Example:-
Mr. A receives the services of Mr. B, an air
travel agent and books two tickets. One
ticket was from Delhi to Canada and the
other from Canada to Delhi. The place of
provision for 1st ticket will be Delhi, hence
taxable and for the 2nd is Canada, hence
non taxable.

16. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-12 Services Provided on board a
conveyance
• Services provided on board a conveyance
during the course of a passenger transport
operation, including services intended to
be wholly or substantially consumed while
on board.
• The place of provision shall be the first
scheduled point of departure of that
conveyance for the journey.
• Example:- A movie on demand is provided as on board
entertainment during the Kolkata-Delhi leg of a Bangkok-
Kolkata-Delhi flight to the travelers, the place of provision of
this service will be Bangkok which is outside taxable territory,
hence not liable to tax.

17. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-13 Power to notify description of
services
In order to prevent double taxation or non-
taxation of the provision of a service, or for
the uniform application of rules, the Central
Government shall have the power to notify
any description of services or circumstances
in which the place of provision shall be :
The place of effective use and enjoyment of
a service.

18. 3. Place of Provision
Generally
4. Performance based
services
5. Service relating to
Immovable Property
8. Service provider and
receiver located in taxable
territory.
7.Service provided at more
than one location
9. Specified Services
6.Service relating to events
10. Goods transportation
service
13. Power to notify
description of services
14. Order of Application of
Rules
12. Service provided on
board a conveyance
11. Passengers
transportation services
Rule-14 Order of application of rules
• Where the provision of a service is, prima
facie, determinable in terms of more than
one rule.
• The place of provision shall be in
accordance with the rule that occurs later
among the rules that merit equal
consideration.

19. Thank you