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CS Executive · Tax Laws and Practice · Time, Value and Place of Supply

Services were supplied by Mehra Consultants on 5 May, after a rate change effective 1 May. The invoice was issued on 25 April and payment was received on 12 May. Under Section 14, what is the time of supply?

The time of supply is 12 May. The services were supplied after the rate change, the invoice was issued before the change, and payment was received after it. Section 14 then treats the date of receipt of payment as the time of supply.

  1. A25 April, the date of invoice
  2. B1 May, the date of rate change
  3. C5 May, the date of provision of service
  4. D12 May, the date of receipt of paymentCorrect

Explanation

The services were supplied after the rate change. The invoice was issued before the change, and payment was received after it. Section 14(b)(i) makes the time of supply the date of receipt of payment, which is 12 May. The invoice date of 25 April is wrong because it applies only in different fact patterns.

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