Place of supply

[sanjeev batra]

1) What will be the place of supply if estate agent receive commission from abroad for letting out/sale of property in india ?

2) What will be tax if property is located in different State other than estate agent registered premises ?

3) What will be tax if property is located in same State of registered premises of estate agent ?

[Alkesh Jani]

Sir,

With regards, to your query No.1, the Section 13(4) of IGST Act, 2017, which is applicable in your case and is as under :-

“13 (4) The place of supply of services supplied directly in relation to an immovable property, including services supplied in this regard by experts and estate agents, supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including that of architects or interior decorators, shall be the place where the immovable property is located or intended to be located”.

For query No.2 & 3, if you can elaborate your query, our experts may reply/comment, more specific to the facts.

Our experts may correct me if mistaken.

Thanks

[Nitika Aggarwal]

As per Section 13(4) of IGST Act, 2017 Place of supply shall be the location of immovable property is located or intended to be located. Since property is located in India, thus the amount of commission received by the estate agent from abroad is exigible to tax.

Further, in view of section 7(3) and 8(2) of IGST Act, 2017, inter-state or intra-state supply shall be determined in the following manner:-

(a) Where location of supplier and place of supply are in two different States, the same shall be considered as inter-state supply and

(b) Where location of supplier and the place of supply are in the same State, the same shall be treated as intra-State supply.

Accordingly IGST or CGST/SGST shall be charged in your case.

Hope, this will resolve your query.

Regards

Nitika Aggarwal

9953157961

[YAGAY andSUN]

Immovable property related services including hotel accommodation,
Location at which the immovable property or boat or vessel is located or intended to be located.
If located outside India:Location of the recipient.

2) IGST

3) CGST + SGST/UTGST

AI Summary

Place of supply for immovable property services determines GST type; cross border commission for India located property is taxable. Place of supply for services directly related to immovable property, including those by estate agents, is the location where the immovable property is located or intended to be located; commission received from abroad for property situated in India is taxable. Inter state or intra state character depends on whether the supplier's location differs from the place of supply, leading to IGST where they differ and CGST plus SGST/UTGST where they coincide. If the immovable property is located outside India, the place of supply is the location of the recipient.