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CA Final · Indirect Tax Laws · Place of Supply

Vardhan Elevators Ltd, registered in Pune (Maharashtra), sells a lift system to Zenith Residency LLP, a registered person in Jaipur (Rajasthan). The components are dispatched from Pune to a construction site in Udaipur (Rajasthan) where Vardhan assembles and installs them. The invoice is addressed to Zenith's registered office in Jaipur. Which statement is correct?

The place of supply is Udaipur, so the supply is inter-State. Section 10(1)(d) fixes the place of supply for goods assembled or installed at site at the place of installation. Clause (ca) does not apply because the recipient is registered, so the Jaipur invoice address does not matter.

  1. APlace of supply is Pune, as movement of goods began there
  2. BPlace of supply is Jaipur, as the invoice is addressed there and the recipient is registered
  3. CPlace of supply is Udaipur, being the place of installation or assembly, so the supply is inter-StateCorrect
  4. DPlace of supply is Udaipur under clause (ca) because the recipient is registered

Explanation

Section 10(1)(d) says that where goods are assembled or installed at site, the place of supply is the place of installation or assembly, which is Udaipur in Rajasthan. Clause (ca) applies only to unregistered recipients, so the invoice address is irrelevant here. Supplier in Maharashtra and place of supply in Rajasthan make this an inter-State supply.

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