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

Vihaan Engineering (Hyderabad) supplies a turbine to Surya Power Ltd, a registered person in Mumbai. The turbine is delivered at a plant site in Raipur and assembled there. Which statement about the place of supply under Section 10(1) is correct?

The place of supply is Raipur. Where goods are assembled or installed at site, the place of supply is the place of the installation or assembly. The recipient's registered location in Mumbai and the supplier's origin in Hyderabad do not determine it.

  1. AMumbai, because the recipient is located there
  2. BHyderabad, because movement of goods began there
  3. CRaipur, as goods are assembled or installed at site and clause (d) appliesCorrect
  4. DRaipur only if the recipient is unregistered

Explanation

Clause (d) provides that where goods are assembled or installed at site, the place of supply is the place of such installation or assembly. That is Raipur. The recipient is registered, so clause (ca) does not apply. Mumbai is wrong as the recipient's location is irrelevant, and Hyderabad is only the origin of the movement.

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