Place of provision of Service

[Asked by Guest]

M/s XYZ provides service of Showing Name of his client ( M/s ABC ) on front search page of google. ( When some one makes related search then client name will come on front page )

Where XYZ is in India And ABC is out of India.

What is Place of Provision of Service as per PPS Rules ?

As per Rule 9(C) of PPS -

An 'intermediary' is a person who arranges or facilitates a provision of service between two persons. Thus, an intermediary is involved with two supplies at any one time:

1. the supply between the principal and the third party; and
2. the supply of his own service (agency service) to his principal, for which a fee or commission is usually charged.

Whether Services of XYZ is intermediary service ?

Kindly Guide

AI Summary

Place of provision of service: classification as intermediary determines whether the POP rules apply and India is the supply location.
The key issue is whether the Indian supplier's activity constitutes an intermediary service: if it merely provides advertising/display services directly to the foreign client without arranging or facilitating a service between the client and a third party, it is not an intermediary and intermediary POP rules do not apply; if it procures or facilitates a third party provider's service for the client, it will be an intermediary and the place of provision will be the supplier's location in India.