Skip to content

CA Intermediate · Taxation · Place of Supply

Ananya Ltd, a registered company in Bengaluru (Karnataka), sells a software licence online to Hari, an unregistered individual in Kolkata (West Bengal). Ananya's records show Hari's billing address as Kolkata, and no other address is on record. What is the place of supply?

The place of supply is Kolkata, West Bengal. For services supplied to an unregistered person, the place of supply is the recipient's location where an address is on record. Since Hari's address is recorded as Kolkata, the supplier's location in Bengaluru does not apply.

  1. ABengaluru, Karnataka
  2. BKolkata, West BengalCorrect
  3. CLocation of the server, wherever it is
  4. DDelhi, being the location of the payment gateway

Explanation

For services to an unregistered recipient, the place of supply is the location of the recipient where the address on record exists. The address on record is Kolkata, so the place of supply is West Bengal. The supplier's location applies only if there is no address of the recipient on record, so it does not apply here.

Did you get it right without looking?

One question tells you little. A timed set on Place of Supply shows your real accuracy, how long you take and where you lose marks.

Practise Place of SupplyFree diagnostic mock

More Place of Supply questions