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CA Final · Indirect Tax Laws · Place of Supply

Veda Appliances Ltd (Jaipur) supplies a modular kitchen system to Arvind, a registered person with principal place of business in Delhi. The components are sent from Jaipur and assembled and installed at Arvind's new site in Gurugram, Haryana. The invoice shows Arvind's Delhi address. Which statement is correct as per Section 10?

The place of supply is Haryana. Where goods are assembled or installed at site, the place of supply is the place of installation or assembly. The invoice-address rule applies only to unregistered recipients, and Arvind is registered, so Gurugram governs rather than Delhi or Jaipur.

  1. ADelhi, because the invoice records the Delhi address of a registered recipient
  2. BRajasthan, because goods originate from Jaipur
  3. CHaryana, because goods are assembled or installed at site and place of supply is the place of installation or assemblyCorrect
  4. DDelhi, because the recipient's principal place of business governs all installation supplies

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. Clause (ca) applies only to unregistered recipients, and Arvind is registered, so the invoice address does not govern. Hence Gurugram, Haryana is the place of supply.

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