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

Deccan Elevators (Pune) supplies a lift to Meridian Hotels Ltd, a registered person in Hyderabad, Telangana. The lift is shipped in parts to the hotel's site and assembled there by Deccan's engineers. The invoice shows Meridian's registered office address in Bengaluru, Karnataka. Which statement is correct under Section 10?

The place of supply is Telangana. Clause (ca) covers only supplies to persons other than registered persons, and the recipient here is registered. So the installation rule in clause (d) applies and the place of supply is the site of assembly, Hyderabad.

  1. APlace of supply is Karnataka, since the invoice records the Bengaluru address
  2. BPlace of supply is Maharashtra, being the supplier's location
  3. CPlace of supply is Telangana, being the place of installation or assembly under clause (d)Correct
  4. DPlace of supply is Karnataka, since clause (ca) overrides clause (d) for all recipients

Explanation

Meridian is a registered person, so clause (ca), which applies only to supplies to persons other than registered persons, does not apply. Clause (d) applies to goods assembled or installed at site, so the place of supply is the installation site in Hyderabad, Telangana. Option D wrongly extends clause (ca) to registered recipients.

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