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

Under the Explanation to Section 14, how is the 'date of receipt of payment' determined for the purpose of this section?

The date of receipt of payment is the earlier of two dates: the date the payment is entered in the supplier's books of account, or the date it is credited to the supplier's bank account. This is what the Explanation to Section 14 provides.

  1. AThe date on which the payment is credited to the supplier's bank account, regardless of books entry
  2. BThe date on which the payment is entered in the supplier's books of account or credited to his bank account, whichever is earlierCorrect
  3. CThe date on which the recipient makes the payment, whichever is later
  4. DThe date on which the invoice is issued by the supplier

Explanation

The Explanation to Section 14 states that 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. Taking only the bank credit date ignores the books entry. The invoice date is a separate concept.

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