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

Vikram Engineering, Coimbatore, supplies a registered buyer in Hyderabad a turbine that is assembled and installed at the buyer's plant at Visakhapatnam, Andhra Pradesh. Which statement is correct under Section 10(1)(d) of the IGST Act, 2017?

The place of supply is Visakhapatnam. Section 10(1)(d) provides that where goods are assembled or installed at site, the place of supply is the place of installation or assembly, so neither the supplier's dispatch point nor the recipient's registered office in Hyderabad decides it.

  1. APlace of supply is Coimbatore, where the parts are dispatched
  2. BPlace of supply is Hyderabad, the recipient's registered address
  3. CPlace of supply is Visakhapatnam, the place of installation or assemblyCorrect
  4. DPlace of supply cannot be determined and is as prescribed

Explanation

Section 10(1)(d) states that where goods are assembled or installed at site, the place of supply is the place of such installation or assembly. The turbine is installed at Visakhapatnam, so that is the place of supply. Hyderabad is wrong because the recipient's registered address is not the test, and Section 10(2) applies only when place cannot be determined.

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