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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Time of Supply

Under Section 12, for the purpose of determining when a supplier 'receives the payment', the date is taken as:

The date of receipt of payment is the date the payment is entered in the supplier's books of account or the date it is credited to his bank account, whichever is earlier. The later date is not used.

  1. AThe date the payment is entered in the books or credited to the bank account, whichever is earlierCorrect
  2. BThe date the payment is entered in the books or credited to the bank account, whichever is later
  3. COnly the date on which the cheque is handed over by the buyer
  4. DThe date of issue of the invoice by the supplier

Explanation

Explanation 2 to Section 12(2) says the date of receipt of payment is the date it is entered in the supplier's books or credited to his bank account, whichever is earlier. The 'later' option reverses this. Cheque handover date is not the stated test.

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