Welcome to your Ch: 5 Place of supply - Services Section 12 (16 to 20)
16. Examine the following statements. Mr. X boards a flight from Mumbai for onward journey to Baghdogra. On flight it purchases packed food.
(i) Place of supply for transportation of passenger is Mumbai and is exempt supply.
(ii) Place of supply for supply of food is Mumbai and is taxable supply.
17. Examine the following statements. Airtel installs leased circuit lines for Infosys Limited at Corporate office in Maharashtra. Airtel bills (leased circuit lines) to ISD registration number which is registered in the State of Gujarat. Airtel also provides post paid mobile connection for 100 employees located in Maharastra and another 200 employees located in Gujarat but all billed to ISD registration number located in Gujarat.
(i) Place of supply for leased circuit line is Gujarat.
(ii) Place of supply for post paid mobile phone is Gujarat.
18. Examine the following statements. HDFC Limited corporate office at Tamil Nadu. K Ltd registered in Delhi has opened a bank account in HDFC branch, Delhi. It has taken credit card facility for which he is billed annually. At one time it also takes a business loan from it’s branch. It pays interest and processing charges.
(i) Place of supply for credit card is Delhi and IGST shall be charged.
(ii) Place of supply for loan processing charge and interest is Delhi and CGST and SGST shall be charged on processing charge. Interest is exempt supply.
19. Examine the following statements. Bhushan Steel Limited registered in UP takes factory insurance from GIC, UP and group health insurance of it’s employees, resident of Delhi from Bajaj, Delhi.
(i) Place of supply for factory insurance is UP.
(ii) Place of supply for health insurance is Delhi.
