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

A train operated from Delhi to Bhopal serves packaged meals. A supplier loads sealed food cartons onto the train at Agra station, and passengers consume them as the train proceeds to Bhopal. Under Section 10(1)(e), what is the place of supply of these goods?

The place of supply is Agra. For goods supplied on board a conveyance such as a train, the place of supply is the location at which the goods are taken on board, regardless of where the journey starts, ends or where consumption occurs.

  1. ABhopal, where the train terminates
  2. BDelhi, where the journey begins
  3. CAgra, the location at which the goods are taken on boardCorrect
  4. DThe place where each passenger is located at consumption

Explanation

For goods supplied on board a conveyance such as a train, vessel, aircraft or motor vehicle, clause (e) fixes the place of supply at the location where the goods are taken on board. The goods were loaded at Agra, so Agra is the place of supply. The journey's start, end or consumption point does not matter.

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