Skip to content

CA Intermediate · Taxation · Place of Supply

Sunrise Events Pvt Ltd, a registered person in Jaipur, hires a hall in Udaipur (Rajasthan) from Lakeview Resorts, a registered supplier in Udaipur, for hosting a corporate conference. The hall is rented for 2 days. What is the place of supply of the hall rental service?

The place of supply is Udaipur, because services directly connected with immovable property, such as renting a hall or venue, are treated as supplied where the property is located. The specific immovable property rule overrides the general rule based on the recipient's location in Jaipur.

  1. AJaipur, the location of the recipient
  2. BUdaipur, the location where the immovable property is situatedCorrect
  3. CLocation of the supplier's head office, wherever situated
  4. DLocation where the conference attendees reside

Explanation

Under section 12(3) of the IGST Act, services directly in relation to immovable property, including hotel or venue accommodation, have the place of supply at the location of the immovable property. The hall is in Udaipur, so Udaipur is the place of supply. The recipient's location (Jaipur) is the default rule and is displaced by the specific rule.

Did you get it right without looking?

One question tells you little. A timed set on Place of Supply shows your real accuracy, how long you take and where you lose marks.

Practise Place of SupplyFree diagnostic mock

More Place of Supply questions