Section 9(12) of the Revised Model IGST Law provides for determination of place of supply for the telecommunication services as under:
- (a) In case of services by way of fixed telecommunication line, leased circuits, internet leased circuits, cable or dish antenna, the place of supply shall be the location where such installation for receipt of such services is done. Example, if ‘A’, a, resident of Bangalore purchases dish antenna from Tata sky, a company providing DTH cable services based out of Mumbai, then the place of supply of DTH services shall be the location where the dish antenna is installed i.e. Bangalore.
- (b) In case of postpaid mobile connection services, the place of supply of telecommunication services shall be the billing address of the recipient of services on record of the service provider. Example, ‘A’, resident of Bangalore, takes services from Airtel Limited, a company based out of New Delhi, for his postpaid mobile connection. The place of supply of services in relation to the postpaid mobile connection shall be the billing address of ‘A’ as per the records of Airtel Limited, regardless of where ‘A’ utilises the mobile services
- (c) In case of prepaid mobile connection services, the place of supply of telecommunication services shall be the location of the selling agent or a reseller or a distributor of SIM card or recharge voucher as per the record of supplier. Example, if ‘A’, a resident of Bangalore has a prepaid mobile connection from Airtel Limited and while travelling to Mumbai, he purchases a recharge coupon from a local distributor, then the place of supply of such services would be the location of the local distributor.
- (d) In case, the vouchers are not sold by aforementioned persons, then the place of supply of services shall be the location where such prepayment is received or such vouchers are sold by any other person to the ultimate subscriber.
- (e) Where address of the recipient as per records of the supplier of service is not available, the place of supply shall be the location of the supplier of service.
- (f) In case of prepaid services, if the recharge is done through Internet banking or electronic mode of payment (online), then the location of the recipient of services as found in the records of the supplier of services shall be the place of supply of such service.
Posted 2 years ago by Neeraj bhagat
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Posted 2 years ago by CA Pulkit Sharma
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