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CA Final · Indirect Tax Laws · Place of Supply

Nandini Pvt Ltd, a registered supplier in Chennai, sells a machine to Rahul, an unregistered individual. The machine is handed over to Rahul at the supplier's Chennai showroom, without any movement of goods. The invoice records Rahul's address as Hyderabad, Telangana. Which is the place of supply under Section 10?

The place of supply is Telangana. For supplies to an unregistered person, the place of supply is the address of that person recorded in the invoice, notwithstanding the rules on movement or location of goods at delivery. Rahul's address in Hyderabad is recorded, so that governs.

  1. AChennai, being the location of goods at the time of delivery
  2. BTelangana, being the address of the unregistered recipient recorded in the invoiceCorrect
  3. CChennai, being the supplier's location
  4. DPlace cannot be determined

Explanation

Section 10(1)(ca) applies to supplies to a person other than a registered person and operates notwithstanding clauses (a) and (c). The place of supply is the address of the recipient recorded in the invoice. Since Telangana is recorded, it is the place of supply. Chennai, the location of delivery under clause (c), is overridden.

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