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CA Intermediate · Taxation · Place of Supply

Rahul, an unregistered individual residing in Jaipur (Rajasthan), books a hotel room in Udaipur (Rajasthan) from Lake View Hotels, registered in Rajasthan, and later has the booking arranged through an online agent in Delhi. Separately, Rahul takes a restaurant service in Mount Abu, Rajasthan. For the room service supplied by the hotel in Udaipur, the place of supply is:

The place of supply is Udaipur, where the hotel is situated. Hotel accommodation is a service directly in relation to immovable property, so the place of supply is the location of that property. The recipient's residence in Jaipur and the agent's location in Delhi do not affect it.

  1. AJaipur, residence of Rahul
  2. BDelhi, location of the agent
  3. CUdaipur, where the immovable property is locatedCorrect
  4. DLocation of supplier's head office if different from Udaipur

Explanation

Services directly in relation to immovable property, including hotel accommodation, have the place of supply where the immovable property is located. The hotel is in Udaipur, so the place of supply is Udaipur, Rajasthan. Rahul's residence and the agent's location are irrelevant.

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