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CMA Intermediate · Direct and Indirect Taxation · Time and Value of Supply

Kapoor Events Ltd. (supplier of taxable services) issued a tax invoice of Rs 50,000 on 10 March. On 2 March it had received an advance of Rs 20,000, and the balance of Rs 30,000 was received on 25 March. The invoice was issued within the prescribed period. Under Section 13, what is the time of supply for the Rs 30,000 portion?

The time of supply for the Rs 30,000 portion is 10 March. The advance of Rs 20,000 creates supply on 2 March only to that extent. For the balance, the invoice date of 10 March is earlier than the payment date of 25 March, so the invoice date governs.

  1. A2 March
  2. B10 MarchCorrect
  3. C25 March
  4. DThe date of provision of service

Explanation

The supply is deemed made to the extent covered by the invoice or payment. The advance of Rs 20,000 triggers supply on 2 March for that amount. For the remaining Rs 30,000, invoice (10 March) is earlier than payment (25 March), so the time is 10 March.

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