Skip to content

CA Intermediate · Taxation · Place of Supply

Sundaram Textiles, a registered supplier in Coimbatore (Tamil Nadu), sells machinery to Kavya Traders, a registered person in Kochi (Kerala). The goods are delivered by the supplier's own truck directly to Kavya Traders in Kochi. What is the place of supply?

The place of supply is Kochi, Kerala, because for goods that are moved, the place of supply is where the movement terminates for delivery to the recipient. The supplier's location in Coimbatore does not decide it, so the supply is inter-State.

  1. ACoimbatore, Tamil Nadu
  2. BKochi, KeralaCorrect
  3. CLocation of the supplier's registered office
  4. DLocation where the order was placed, which is the supplier's state

Explanation

Where goods are supplied involving movement, the place of supply is the location where the movement of goods terminates for delivery to the recipient. The goods terminate in Kochi, so the place of supply is Kerala. Coimbatore is only the location of the supplier, which is wrong here. The supply is therefore inter-State.

Did you get it right without looking?

One question tells you little. A timed set on Place of Supply shows your real accuracy, how long you take and where you lose marks.

Practise Place of SupplyFree diagnostic mock

More Place of Supply questions