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CA Final · Indirect Tax Laws · Place of Supply

Gangotri Lifts Ltd, a registered supplier in Kolkata (West Bengal), supplies a lift and installs it at the premises of Shanti Hospitals, a registered person whose head office is in Delhi, at a site in Ranchi (Jharkhand). The lift components are moved from Kolkata to Ranchi and assembled there. Which statement is correct as per Section 10?

The place of supply is Ranchi, Jharkhand. Where goods are assembled or installed at site, the place of supply is the place of installation or assembly, whether or not the recipient is registered. The recipient's head office in Delhi and the dispatch point in Kolkata are irrelevant.

  1. APlace of supply is Delhi, being the recipient's registered location
  2. BPlace of supply is Ranchi, Jharkhand, being the place of installation or assemblyCorrect
  3. CPlace of supply is Kolkata, being where the goods were dispatched
  4. DPlace of supply is Ranchi under clause (a) only, as clause (d) applies solely to unregistered recipients

Explanation

Section 10(1)(d) provides that where goods are assembled or installed at site, the place of supply is the place of such installation or assembly, which is Ranchi. The clause is not limited to unregistered recipients, so the last option is wrong. Delhi and Kolkata are not relevant under the provision.

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