Key Amendments in Place of Supply Rules

Accommodation Services: Services related to accommodation for events like marriage receptions to be treated as supplied in each respective state or union territory based on the proportion of the property area or time spent. Illustrations: Illustration 1: Apportionment of hotel charges between Delhi and Agra based on the ratio of stay duration. Illustration 2: Site preparation work apportioned between two states based on land area ratio. Illustration 3: Apportionment of houseboat stay charges between Kerala and Karnataka based on time spent in each state.

Services for Events: Services for organizing events like conferences, fairs, etc., to be apportioned among states or union territories where the event is held based on generally accepted accounting principles. Leased Circuits: Apportionment of services for leased circuits installed across multiple states based on the number of points in each state. Other Services: Provisions for apportionment of services relating to immovable property, leased circuits, and events organized across multiple states or union territories.

Illustrations: Illustration 1: Apportionment of testing services of a dredging machine between Orissa and Andhra Pradesh. Illustration 2: Apportionment of car servicing charges between Delhi and Haryana based on car invoice values. Illustration 3: Makeup services provided in Maharashtra and Goa to be apportioned based on generally accepted accounting principles. Application of Rules: Rules to be applied in cases of services provided directly in relation to immovable property, accommodation services, and organization of events, where the location of supplier or recipient is outside India.

Mutatis Mutandis: Provisions of rule 4 and rule 5 to be applied, with necessary adjustments, for determining the proportion of value attributable to different states or union territories. These amendments aim to provide clarity and fairness in determining the place of supply for various services across different states or union territories. (Dr. Sree Parvathy S.L.) Under Secretary to the Government of India