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CA Final · Indirect Tax Laws · Place of Supply

A train running from Delhi to Jaipur to Ahmedabad has a catering service supplying packaged snacks to passengers. Snacks are loaded on board at Jaipur and sold to passengers between Jaipur and Ahmedabad. Under Section 10(1)(e), what is the place of supply of these goods?

The place of supply is Jaipur. For goods supplied on board a conveyance, including a train, vessel, aircraft or motor vehicle, the place of supply is the location at which the goods are taken on board, regardless of where the conveyance starts, ends or the goods are consumed.

  1. AAhmedabad, the destination of the train
  2. BDelhi, the origin of the train
  3. CJaipur, the location where the goods are taken on boardCorrect
  4. DThe place where each passenger consumes the snacks

Explanation

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. The snacks were taken on board at Jaipur. The destination and origin of the train, and the place of consumption, are not the test.

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