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CA Intermediate · Taxation · Place of Supply

Anand Builders, registered in Lucknow (Uttar Pradesh), engages Priya Architects, registered in Mumbai (Maharashtra), to prepare architectural plans for an immovable property that is located in Goa. Priya Architects raises the invoice on Anand Builders. Under IGST Act provisions, what is the place of supply and the nature of the supply?

The place of supply is Goa and the supply is inter-State. Architect services relating to immovable property are treated as supplied where the property is located, and since the supplier is in Maharashtra, the supplier's location and the place of supply are in different States.

  1. AGoa; inter-State supplyCorrect
  2. BMaharashtra; intra-State supply
  3. CUttar Pradesh; inter-State supply
  4. DGoa; intra-State supply

Explanation

Services directly in relation to an immovable property, including architects' services, have the place of supply where the immovable property is located, Goa. The supplier's location is Maharashtra, and Goa differs from it, so the supply is inter-State, attracting IGST. Choosing Uttar Pradesh uses the recipient's location, which is the general rule but is overridden here.

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