TMI BlogPOS - Services in relation to an immovable property (within India) [ Section 12(3) of IGST Act ]X X X X Extracts X X X X X X X X Extracts X X X X ..... to use immovable property or for carrying out or co-ordination of construction work or Services provided by way of lodging accommodation by a hotel, inn, guest house, homestay, club, campsite, house , boat, vessel or; Services provided by way of accommodation in an immovable property for organizing, any marriage/reception or matters related thereto, official, social, cultural, religious or business functions, including services provided in relation to such function at such property or; Any services ancillary to the above-mentioned services. Location at which immovable property or boat or vessel is located or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hotel is located. Example 3 :- A is a rich businessman of Delhi. He hosts the marriage of his daughter in the Udaipur fort in Udaipur Rajasthan. The place of supply of service will be Udaipur. In fact, all other services provided at the Udaipur Fort for the conduct of marriage will also have place of supply as Udaipur. Example 4:- Mr. X an architect (kolkata ), provides interior decorator services to Mr. Y of New York (USA) in relation to his immovable property located in New Delhi. In this case, where location of the supplier or location of recipient of services is outside India, the place of supply directly to an immovable property including that the of interior decorators is the place where the immova ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Union territory of Delhi and in the State of Uttar Pradesh and the service shall be deemed to have been provided in the Union territory of Delhi and in the State of Uttar Pradesh in the ratio 2:1 respectively. The value of services provided will thus be apportioned as ₹ 20,000/- in the Union territory of Delhi and ₹ 10,000/- in the State of Uttar Pradesh. 2. Nature of Services: - In case of all other services in relation to immovable property including services by way of accommodation in any immovable property for organising any marriage or reception etc., and in cases of supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called where such property is a single property locat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted both in Kerala and Karnataka inasmuch as the guests board the house boat in Kerala and stay there for 22 hours but it also moves into Karnataka for 2 hours (as declared by the service provider). The place of supply of this service is in the States of Kerala and Karnataka. The service shall be deemed to have been provided in the ratio of 22:2 or 11:1 (simplified) in the states of Kerala and Karnataka, respectively. The value of the service shall be accordingly apportioned between the States. Important Point Clarification regarding determination of place of supply in case of supply of services in respect of advertising sector [ Circular No. 203/15/2023-GST Dated 27.10.2023 ] 1. There may be a case wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e time of display of the advertisement, the vendor is in possession of the hoarding/structure at the said location on which advertisement is displayed and the advertising company is not occupying the space or the structure. In this case, as the service is being provided by the vendor to the advertising company and there is no supply (sale) of space/ supply (sale) of rights to use the space on hoarding/structure (immovable property) by the vendor to the advertising company for display of their advertisement on the said display board/structure, the said service does not amount to sale of advertising space or supply by way of grant of rights to use immovable property. Accordingly, the place of supply of the same shall not be covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be considered as the services of supply of renting of immovable property. Therefore, the place of supply of the Co-location services shall not be determined by the provisions of clause (a) of section 12(3) of the IGST Act but the same shall be determined by the default place of supply provision under section 12(2) of the IGST Act i.e. location of recipient of co-location service. 2. whether the place of supply of Co-location services is to be determined by the default place of supply provision under section 12(2) of the IGST Act as the supply of service is Hosting and Information Technology (IT) Infrastructure Provisioning services involving providing services of hosting the servers and related hardware, security of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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