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Place of supply

Sushil (Student) (46 Points)

20 June 2020

a person Mr X (registerd in Kerala) sold a pre installed tower located in Delhi to Mr Y (registered in Madhya Pradesh).

1)what will be the POS?

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13 Replies

Padmanabhan (Student) (1321 Points)
Replied 20 June 2020

Madhya Pradesh

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David (article Assistant) (1639 Points)
Replied 20 June 2020

Hi, POS of immovable property will be the location of immovable property is situated. Hence here it will be Delhi.

3 Like

KRISSHNAN KP (4215 Points)
Replied 20 June 2020

POS DELHI

1 Like

Hemal Makwana (Designation) (771 Points)
Replied 20 June 2020

Place of installation I. e. madhya pradesh. pls refer 10(1) (d) of igst act. pos will be immovable property is in case of supply of services. here it's case of supply of goods.

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David (article Assistant) (1639 Points)
Replied 20 June 2020

Here it is pre installed tower located in Delhi...so Place of installation is at Delhi.. So POS is in delhi

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Sushil (Student) (46 Points)
Replied 20 June 2020

Thanx for replying..

but pls tell me that will it qualify as "goods"

Hemal Makwana (Designation) (771 Points)
Replied 20 June 2020

@ david. I assumed that tower will be sold to person in MP and 'pre-installed''' is its characteristics and thought that tower will be supplied and installed at MP. If Its going to be installed at Delhi, then POS will be delhi. Apology for gap in understanding.

@ sushil, if its merely installation services then its supply of services. If its involves supply of tower as well its installation then it qualifies as composite supply and principal supply is supply of tower which is goods

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Sushil (Student) (46 Points)
Replied 20 June 2020

@ hemal sir..

in question it is said that the pre installed tower is sold to mr y..

so it's a sale and not service as per opinion sir..

and if it's sale then it's good..but as per goods definition an immovable property is not goods..so question is if it's not good then it is not supply and there will be no question of POS..

Hemal Makwana (Designation) (771 Points)
Replied 20 June 2020

@ sushil Sir

The towers are merely fastened to the civil foundation to make them wobble- free and ensure stability. Further, such towers can be unbolted and reassembled without any damage in a new location. Accordingly, the towers cannot be considered as permanently attached to the earth, and consequently, its not immovable property.

There are judicial precedents whereby it has been held that tower are not immovable properties and cenvat credit can be allowed.

Sushil (Student) (46 Points)
Replied 20 June 2020

Sir if possible can u give some judicial precedents for reference

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Hemal Makwana (Designation) (771 Points)
Replied 20 June 2020

Vodafone mobile services Ltd vs commissioner of service tax 2018 delhi high Court - in favour of assessed

bharti airtel vs cce, pune - bombay high court -in favour of revenue.

pending at supreme court level .

telecommunication towers are excluded from the definition of plant and machinery under gst.
however, that's when delhi high Court judgement provides ray of hope to taxpayers..

in my view it should be allowed by supreme Court.

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