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CA Final · Indirect Tax Laws · Place of Supply

A train running from Kolkata to Delhi has a catering contractor that loads packaged snacks at Kolkata and Patna stations for sale to passengers. Snacks sold on board to passengers after leaving Patna had been taken on board at Kolkata. What is the place of supply of those snacks under Section 10?

The place of supply is Kolkata. For goods supplied on board a conveyance such as a train, the place of supply is the location where the goods are taken on board, and these snacks were loaded at Kolkata, regardless of where they were sold.

  1. ADelhi, the destination of the train
  2. BPatna, where the sale to the passenger happened
  3. CKolkata, the location at which the goods were taken on boardCorrect
  4. DPlace of the contractor's registered office

Explanation

Section 10(1)(e) provides that for goods supplied on board a conveyance, including a train, the place of supply is the location at which such goods are taken on board. These snacks were taken on board at Kolkata, so Kolkata is the place of supply, not the sale point or destination.

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