Page 110 - CA Final GST

Badlani Classes

Illustration:ABCplacesanorderonKLforadvertisementstobeplacedona
trainwithregardtothe“JananiSurakshaYojana”.Thelengthofatrackinastate
willvaryfromtraintotrain.ThusforadvertisementstobeplacedontheHazrat
NizamuddinVascoDaGamaGoaExpresswhichrunsthroughDelhi,Haryana,Uttar
Pradesh,MadhyaPradesh,Maharashtra,KarnatakaandGoa,KLmayascertainthe
totallengthofthetrackfromHazratNizamuddintoVascoDaGamaaswellasthe
lengthofthetrackineachoftheseStatesandUnionterritoryfromthewebsite
www.indianrail.gov.in.TheplaceofsupplyofthisserviceisintheUnionterritoryof
DelhiandStatesofHaryana,UttarPradesh,MadhyaPradesh,Maharashtra,
KarnatakaandGoa.ThevalueofthesupplyineachoftheseStatesandUnion
territoryattributabletothedisseminationintheseStateswillbeintheratioofthe
length of the track in each of these States and Union territory. If this ratio works
out to
say0.5:0.5:2:2:3:3:1,andtheamounttobepaidtoKLisonelakhtwentythousand
rupees, then KL willhave tocalculatetheStatewiseand
Unionterritorywisebreakup
ofthevalueoftheservice,whichwillbeintheratioofthelengthofthetrackineach
StateandUnionterritory.InthegivenexampletheStatewiseandUnionterritory
wisebreakupworksouttoDelhi(fivethousandrupees),Haryana(fivethousand
rupees),UttarPradesh(twentythousandrupees),MadhyaPradesh(twentythousand
rupees),Maharashtra(thirtythousandrupees),Karnataka(thirtythousandrupees)
andGoa(tenthousandrupees).SeparateinvoiceswillhavetobeissuedStatewise and
Unionterritorywiseby KLtoABCindicatingthe value pertainingtothatState
orUnionterritory.

(d)
(i) inthecaseofadvertisementsonthebackofutilitybillsofoilandgas
companiesetc,theamountpayablefortheadvertisementsonbillspertainingt
o
consumershavingbillingaddressesinsuchStatesorUnionterritoryasthecas
emay
be,isthevalueofadvertisementserviceattributabletodisseminationinsuch
State or Union territory.
(ii) inthecaseofadvertisementsonrailwaytickets,thebreakup,
calculatedonthebasisoftheratioofthenumberofRailwayStationsineachSt
ateor
Unionterritory,whenappliedtotheamountpayableforsuchadvertisements,
shall
constitutethevalueofadvertisementserviceattributabletothedisseminatio
ninsuch State or Union territory, as the case may be.

Illustration:ABChasissuedareleaseordertoMNfordisplayof
advertisementsrelatingtothe“Ujjwala”schemeontherailwayticketsthataresold
fromalltheStationsintheStatesofMadhyaPradeshandChattisgarh.Theplaceof
supplyofthisserviceisinMadhyaPradeshandChattisgarh.Thevalueof
advertisementserviceattributabletothesetwoStateswillbeintheratioofthe
numberofrailwaystationsineach Stateasascertained fromthe Railways orfromthe
websitewww.indianrail.gov.in..Letusassumethatthisratiois713:251and thetotal
billisrupeesninethousandsixhundredandforty.Thebreakupoftheamountbetween
MadhyaPradeshandChattisgarhinthisratioof713:251worksouttoseven
thousandonehundredandthirtyrupeesandtwothousandfivehundredandten rupees
respectively. Separateinvoices willhave to beissued State wise by MNtoABC
indicatingthevaluepertainingtothatState. Page109

Central Goods & Services Tax Act, 2017