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CA Intermediate · Taxation · Place of Supply

Meera Events Pvt. Ltd., Pune (Maharashtra), a registered person, is engaged by Hotel Lakeview, a registered person in Udaipur (Rajasthan), to organise a wedding expo inside the hotel premises in Udaipur. The consideration is paid by Hotel Lakeview. What is the place of supply for the event services?

The place of supply is Udaipur, Rajasthan. Event organisation services supplied to a registered person have the place of supply at the recipient's location. Hotel Lakeview, the registered recipient, is in Udaipur, so the supply is treated as made in Rajasthan, not at the supplier's location in Pune.

  1. APune, Maharashtra, being the location of the supplier
  2. BUdaipur, Rajasthan, being the location where the event is heldCorrect
  3. CLocation of the recipient's registered office, wherever it may be
  4. DMaharashtra or Rajasthan at the choice of the supplier

Explanation

For services supplied by way of admission to, or organisation of, a cultural, artistic, sporting, scientific, educational, entertainment event, or a celebration, conference, fair, exhibition, to a registered person, the place of supply is the location of the recipient. Hotel Lakeview is registered and located in Udaipur, so the place of supply is Rajasthan. The distractor naming Pune uses the supplier's location, which is wrong; the event also happens in Udaipur, so either approach would point to Rajasthan, but the rule applied is the recipient's location.

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