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

Sharma Electricals, a registered supplier in Pune, supplies goods worth Rs 80,000 to a registered dealer in Nashik on 10 June. The goods are removed on 10 June and the supply is continuous in no way. By which date must the tax invoice be issued, as per the general rule for supply of goods involving movement of goods?

The invoice must be issued before or at the time of removal of goods, so on or before 10 June. The 30-day period applies to supply of services, not to goods requiring movement, hence the other timelines are incorrect.

  1. ABefore or at the time of removal of goods, i.e. on or before 10 JuneCorrect
  2. BWithin 30 days from the date of supply
  3. COn or before the date of receipt of payment, whichever is later
  4. DWithin 45 days from the date of removal

Explanation

For supply of goods requiring movement, the invoice must be issued before or at the time of removal of the goods for supply to the recipient. The 30-day limit applies to services, not to goods, so it is wrong here.

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