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CS Executive · Tax Laws and Practice · Time, Value and Place of Supply

Mr Sharma holds a savings account with a bank branch whose records show his address as Nagpur. While travelling in Goa, he uses the bank's services through an ATM there. What is the place of supply of the banking services to him?

The place of supply is Nagpur. For banking services to an account holder, the place of supply is the recipient's location as recorded by the bank. Where the customer is physically present when using the service does not change this.

  1. AGoa, where the service is physically used
  2. BNagpur, the location of the recipient on the supplier's recordsCorrect
  3. CThe location of the bank's head office
  4. DThe location of the ATM operator's registered office

Explanation

For banking and financial services supplied to account holders, the place of supply is the recipient's location on the supplier's records. The records show Nagpur, so the place of supply is Nagpur. Goa is only where he happened to use the service.

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