CMA Final · Indirect Tax Laws and Practice · Time of Supply
Under section 12(6) of the CGST Act, 2017, how is the time of supply determined for the part of the value of a supply of goods that represents interest for delayed payment of consideration?
The time of supply for interest, late fee or penalty for delayed payment included in the value is the date on which the supplier actually receives that addition in value. It is not tied to the original invoice or delivery dates.
- AThe date on which the supplier receives such addition in valueCorrect
- BThe date of issue of invoice for the original supply
- CThe date of delivery of the goods
- DThe date on which the supplier is liable to charge interest
Explanation
Section 12(6) specifically provides that, to the extent of an addition in value by way of interest, late fee or penalty for delayed payment, the time of supply is the date the supplier receives it. The original invoice date does not govern this component.
Did you get it right without looking?
One question tells you little. A timed set on Time of Supply shows your real accuracy, how long you take and where you lose marks.
More Time of Supply questions
- Under the CGST Act, 2017, the time of supply of goods to the extent it relates to an addition in the value of supply by way of interest, lat…
- Under the CGST Act, 2017, for supply of goods on which tax is payable under reverse charge, the time of supply is the earliest of certain da…
- A foreign associated enterprise located outside India provides a taxable service to Kaveri Industries Ltd. in India, on which tax is payable…
- Under section 12(6) of the CGST Act, 2017, a supplier of goods charges Rs. 4,000 as interest for delayed payment by a customer, and the cust…
- Under the CGST Act, 2017, a supplier of taxable goods receives Rs. 800 more than the amount shown in the tax invoice. Which statement correc…
- A registered recipient, Dhruv Steels, receives a taxable service on reverse charge from an unregistered supplier. The supplier issues an inv…