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

Under reverse charge for goods, Delta Ltd (recipient) receives goods on 20 March. The supplier's invoice is dated 10 March, and Delta pays on 5 April. What is the time of supply?

The time of supply is 20 March, the date of receipt of goods. Under reverse charge, section 12(3) takes the earliest of receipt of goods, payment date, and the day after 30 days from invoice, and 20 March precedes 5 April and 10 April.

  1. A10 March, the invoice date
  2. B5 April, the payment date
  3. CThe date immediately following 30 days from invoice, i.e. 10 April
  4. D20 March, the date of receipt of goodsCorrect

Explanation

Section 12(3) takes the earliest of: receipt of goods (20 March), payment date (5 April), and the day after 30 days from invoice (10 March plus 30 days is 9 April, so 10 April). The earliest is 20 March. The invoice date itself is not a trigger under reverse charge.

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