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CA Intermediate · Taxation · Place of Supply

Mira, an unregistered individual of Nagpur (Maharashtra), books a hotel stay with Lakeview Resorts, a registered hotel in Udaipur (Rajasthan), through an online agent based in Mumbai. The service is of accommodation in an immovable property. What is the place of supply of the accommodation service?

The place of supply is Udaipur, Rajasthan. Services directly connected with immovable property, including hotel accommodation, are supplied where the property is located. The recipient's home in Nagpur and the booking agent's location in Mumbai do not affect the place of supply.

  1. ANagpur, Maharashtra
  2. BMumbai, Maharashtra
  3. CUdaipur, RajasthanCorrect
  4. DPlace of the online agent's server

Explanation

The place of supply of services directly in relation to an immovable property, including hotel accommodation, is the location where the immovable property is located. The hotel is in Udaipur, so the place of supply is Rajasthan, regardless of the recipient's residence or the booking agent's location.

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