Skip to content

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

Gati Foods supplies packaged snacks on board a train running from Kolkata (West Bengal) to Chennai (Tamil Nadu). The goods are taken on board at Vijayawada (Andhra Pradesh) and sold to passengers during the journey. What is the place of supply under Section 10?

The place of supply is Vijayawada in Andhra Pradesh. For goods supplied on board a conveyance such as a train, the place of supply is the location where those goods are taken on board, not the origin, destination, or the passengers' boarding points.

  1. AVijayawada, Andhra Pradesh, where the goods are taken on boardCorrect
  2. BTamil Nadu, the final destination of the train
  3. CWest Bengal, the origin of the train
  4. DThe State where each passenger boards the train

Explanation

Clause (e) provides that where goods are supplied on board a conveyance such as a vessel, aircraft, train or motor vehicle, the place of supply is the location at which the goods are taken on board. The goods were taken on board at Vijayawada. The origin and destination of the train are irrelevant.

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