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CMA Final · Indirect Tax Laws and Practice · Place of Supply

Veda Engineering, Pune, supplies a turbine to Nilgiri Power Ltd, a registered person in Coimbatore, Tamil Nadu. The turbine is dispatched from Pune and assembled and installed at Nilgiri's plant site in Karur, Tamil Nadu, with Nilgiri's registered address being in Coimbatore. Which statement correctly gives the place of supply under Section 10?

The place of supply is Tamil Nadu, the place of installation. Where goods are assembled or installed at site, the place of supply is the place of such installation or assembly. The dispatch location in Maharashtra and the recipient's registered address do not govern this supply.

  1. AMaharashtra, because the goods were dispatched from Pune
  2. BTamil Nadu, being the place of installation under clause (d)Correct
  3. CTamil Nadu only because Nilgiri's address is in Coimbatore, with the installation clause not relevant
  4. DIt cannot be determined and has to be fixed under prescribed rules

Explanation

Clause (d) states that where goods are assembled or installed at site, the place of supply is the place of such installation or assembly. Karur is in Tamil Nadu, so the place of supply is Tamil Nadu. Clause (ca) applies only to unregistered recipients, and Nilgiri is registered, so the invoice address is not the test. Option C reaches the right State by a wrong reason, and the reasoning tested is the installation clause.

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