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CA Intermediate · Taxation · Tax Invoice; Credit and Debit Notes

Mehta Consultants, a registered firm, provided taxable consulting services to a registered client on 5 August. It is not an insurer, banking company or financial institution. By what latest date must it issue the tax invoice, assuming no continuous supply of service?

A normal service provider must issue the tax invoice within 30 days from the date of supply of service. For a supply on 5 August, the last date is 4 September. The 45-day period is available only to insurers, banking companies and financial institutions including NBFCs.

  1. A14 August
  2. B4 SeptemberCorrect
  3. C30 September
  4. D31 August

Explanation

For taxable services, the invoice must be issued within 30 days from the date of supply of service. Counting 30 days from 5 August gives 4 September (26 days remaining in August after the 5th, plus 4 days in September). The 45-day limit applies only to insurers, banks and financial institutions.

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