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CA Intermediate · Taxation · Time of Supply

Sunrise Traders, Pune, a registered person, supplies goods to Kalyan Enterprises on 10 June. The goods are removed on 12 June, the invoice is issued on 15 June and payment is received on 20 June. Assume the invoice was issued within the prescribed period. What is the time of supply of these goods under the forward charge provisions?

The time of supply is 12 June. For goods supplied with removal, the invoice must be issued by the date of removal, so that is the due date. This is earlier than the actual invoice date of 15 June and the payment date of 20 June, and the earliest date applies.

  1. A10 June
  2. B12 JuneCorrect
  3. C15 June
  4. D20 June

Explanation

For goods under forward charge, time of supply is the earliest of the date of invoice or the last date by which the invoice should have been issued, or the date of receipt of payment. Where goods are removed, the invoice is due on or before the date of removal. So the last date for invoice is 12 June, which is earlier than the actual invoice date (15 June) and payment (20 June). Hence 12 June.

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