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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Time of Supply

For the purpose of section 12(2)(b), the date on which the supplier receives the payment is:

The date of receipt of payment is the earlier of the date the payment is entered in the supplier's books of account and the date it is credited to the supplier's bank account. The later date, cheque date or return date is not used.

  1. AThe date of the cheque issued by the buyer
  2. BThe later of the date of entry in books and the date of credit in the bank account
  3. CThe date on which the payment is entered in the supplier's books or credited to his bank account, whichever is earlierCorrect
  4. DThe date of the supplier's next periodical return

Explanation

Explanation 2 to section 12(2) states that the date of receipt of payment is the date on which the payment is entered in the supplier's books of account or credited to his bank account, whichever is earlier. The 'later of' option reverses this, and the cheque date or return date is not the test.

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