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CS Executive · Tax Laws and Practice · Time, Value and Place of Supply

Anil Pharma of Pune (Maharashtra) supplies goods to a buyer in Indore (Madhya Pradesh), and the goods are not moved at all because they are assembled and installed at the buyer's site in Indore. Which statement correctly identifies the place of supply?

The place of supply is Indore, Madhya Pradesh. For goods that are assembled or installed at a site, the place of supply is the place where the installation or assembly takes place, not the supplier's location, invoicing location or the buyer's bank.

  1. APune, because the supplier is located there
  2. BIndore, because for goods assembled or installed at site the place of supply is the place of installation or assemblyCorrect
  3. CThe state where the invoice is raised
  4. DThe state of the buyer's bank

Explanation

Where goods are assembled or installed at site, the place of supply is the place of such installation or assembly. Pune is the location of the supplier only, and invoice location or buyer's bank is irrelevant.

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