Clarification regarding determination of place of supply in case of software/design services related to Electronics Semi-conductor and Design Manufacturing (ESDM) industry
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Place of supply: ancillary testing on recipient provided prototypes adopts recipient location for tax purposes. Where testing on recipient provided prototype hardware is ancillary to the principal software and integrated circuit design service in a composite supply, the place of supply is the location of the service recipient; the separate place of supply provision for goods physically made available by the recipient does not apply to determine the place for such ancillary testing.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Place of supply: ancillary testing on recipient provided prototypes adopts recipient location for tax purposes.
Where testing on recipient provided prototype hardware is ancillary to the principal software and integrated circuit design service in a composite supply, the place of supply is the location of the service recipient; the separate place of supply provision for goods physically made available by the recipient does not apply to determine the place for such ancillary testing.
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