Place of Supply

[mk Jain]

Dear Sir,

If any goods cleared from Gujrat (Vendor) to Maharashtra ( Processor) on behalf of Rajasthan ( Manufacturer) as direct delivery & Freight payment liability of person in Rajasthan then what is the place of supply of tax on freight payment (reverse charge).

Rgds,

MJ

[Himansu Sekhar]

In my view the liability is on rajastan manufacturer.

[Ganeshan Kalyani]

Yes Rajasthan is the place of supply in this case.

AI Summary

Place of supply for freight under reverse charge is the manufacturer's State, making the manufacturer liable for tax.
Where freight payment liability under reverse charge rests with the manufacturer, the place of supply for the freight service is the State in which that manufacturer is established; therefore, with goods delivered from Gujarat to Maharashtra on behalf of a Rajasthan manufacturer and freight payable by that manufacturer, the place of supply is Rajasthan and the reverse charge liability is on the Rajasthan manufacturer.