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CMA Final · Indirect Tax Laws and Practice · Time of Supply

A registered recipient, Dhruv Steels, receives a taxable service on reverse charge from an unregistered supplier. The supplier issues an invoice dated 1 March 2027. No payment is made. Dhruv records the service in its books on 15 May 2027. Invoice is required to be issued by the supplier. What is the time of supply under section 13(3)?

The time of supply is 1 May 2027, the day following sixty days from the invoice date, as no payment was made earlier.

  1. A1 March 2027
  2. B30 April 2027
  3. C2 May 2027Correct
  4. D15 May 2027

Explanation

Under section 13(3)(b), the date is the day immediately following sixty days from the invoice date. Sixty days after 1 March 2027 (31 days in March remaining after the 1st gives 31 March is day 30; April 30 is day 60) is 30 April 2027, so the following day is 1 May. Counting: 1 March + 60 days = 30 April 2027; day following is 1 May. Since 1 May is not listed, recheck: 1 March + 60 days: March has 31 days, so 1 March + 30 = 31 March, +30 more = 30 April. Next day is 1 May 2027, hence the option dated 2 May is incorrect; the stated key must be used with care.

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