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CA Intermediate · Taxation · Place of Supply

Kaveri Logistics, located in Kochi (Kerala), provides a passenger transportation service to Rohan Mehta, an unregistered individual, who boards a bus in Kochi to travel to Bengaluru. The ticket is booked from Kochi. What is the place of supply of this service?

The place of supply is Kochi. For passenger transport services supplied to an unregistered person, the place of supply is where the passenger embarks on the conveyance for the continuous journey. The destination, Bengaluru, is irrelevant, so the tax is determined by the boarding point.

  1. AKochi, being the place where the passenger embarks on the conveyanceCorrect
  2. BBengaluru, being the destination
  3. CPlace of the supplier's registered office in all cases
  4. DPlace agreed between the supplier and the passenger

Explanation

For passenger transportation services to an unregistered person, the place of supply is the place where the passenger embarks on the conveyance for the continuous journey. Rohan embarks at Kochi, so the place of supply is Kochi. The destination of the journey has no role in determining the place of supply.

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