Clarification on place of removal circular

[Asked by Guest]

Dear Sir, Please clarify the latest circular no 988 of place of removal , thanks and regards.

[Rajagopalan Ranganathan]

Sir,

The implication of the said circular is the place where sale has taken place or when the property in goods passes from the seller to the buyer is the relevant consideration to determine the place of removal . The fact that payment of transport , inclusion of transport charges in value , payment of insurance or who bears the risk are not the relevant considerations to ascertain the place of removal. However, in my opinion, this instruction is subject to judicial scrutiny

[Mahir S]

Yes, in addition to the above answer, the transfer of possession of the goods to the buyer can be termed as place of removal.

AI Summary

Place of removal: transfer of property or possession determines tax location; transport and insurance allocations are irrelevant.
Place of removal is determined by when property in the goods passes from seller to buyer; sale or transfer of ownership is the operative factor. Transport charges, inclusion of carriage in value, insurance payments and allocation of risk are not relevant to ascertaining place of removal. Transfer of possession to the buyer can likewise indicate the place of removal where it evidences the transfer of property.