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CA Intermediate · Taxation · Place of Supply

Kavita Consultants, a registered firm in Pune (Maharashtra), provides a training service to Orion Pharma, a registered company in Hyderabad (Telangana), by conducting a seminar for Orion's employees at a hotel in Goa. The seminar is not a training on immovable property. Which is the place of supply under the general rule for services between registered persons?

The place of supply is Hyderabad, the recipient's location. Under the general rule for services where the recipient is a registered person, the place of supply is the recipient's location. The place where the seminar is physically held does not matter, so Goa and Pune are incorrect.

  1. AGoa, where the seminar is held
  2. BPune, the location of the supplier
  3. CHyderabad, the location of the recipientCorrect
  4. DMaharashtra or Telangana at the option of the supplier

Explanation

Under the general rule, when both supplier and recipient are in India and the recipient is registered, the place of supply of services is the location of the recipient. The recipient is registered in Hyderabad, so Telangana is the place of supply. The venue of the seminar is irrelevant here, so Goa is wrong.

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