CMA Final · Indirect Tax Laws and Practice · Time of Supply
A rate of tax on goods changes on 1 November. Goods are supplied on 5 November. Rohit Traders issues an invoice on 28 October and receives payment on 7 November (entered in books on 7 November and credited to bank on 7 November). What is the time of supply under section 14?
The time of supply is 7 November. Goods were supplied after the rate change, the invoice was issued before the change, and payment was received after it. For that combination section 14(b)(i) makes the date of receipt of payment the time of supply.
- A28 October
- B1 November
- C5 November
- D7 NovemberCorrect
Explanation
The goods were supplied after the rate change. The invoice was issued before the change but payment was received after it. Section 14(b)(i) fixes the time of supply as the date of receipt of payment, 7 November. The 28 October option wrongly applies the rule for supplies made before the change.
Did you get it right without looking?
One question tells you little. A timed set on Time of Supply shows your real accuracy, how long you take and where you lose marks.
More Time of Supply questions
- Under section 12 of the CGST Act, 2017, a supplier of taxable goods receives an amount in excess of the amount shown in the tax invoice. For…
- Under section 12(4) of the CGST Act, 2017, how is the time of supply of goods determined where a voucher is supplied?
- Under section 12 of the CGST Act, 2017, a supplier of taxable goods receives Rs. 800 more than the amount shown in the tax invoice. For the …
- Rate of tax on a taxable service changes on 1 October. Vihaan Tech provided the service on 25 September, issued its invoice on 28 September,…
- Gupta Steel Ltd issues a tax invoice for goods worth Rs. 5,00,000 on 20 January and receives Rs. 2,00,000 on 10 January (credited and entere…
- Under section 12(2) of the CGST Act, 2017, a supplier of taxable goods issues a tax invoice for Rs. 80,000 and receives Rs. 80,700 from the …