EXAMPLE-45
Mr. Aman agreed to supply goods to Mr. Mohit (in Reverse charge) and
issued invoice on 6.7.2017. Payment made by Mohit by RTGS on 12.08.2017 and
supply has been received on 12.08.2017.
(a)
When will be the time
of Supply of goods?
(b)
If
in the same case payment entered in books of recipient (Mohit) on issue of
cheque is made on 4.08.2017 but debited in account on 13.08.2017. When will be
the time of Supply of goods?
Answer:
(a)
In this case
As per section 12(3) earliest of the following events is the Time of
supply of goods:-
Date of receipt of goods – 12.08.2017
Date of payment - 12.08.2017 (Amt debited in account on RTGS and entry in
books made thereafter)
31st day of date of issue of invoice- 6.8.2017
Time of supply in this case shall be treated as 6.08.2017, hence supply
of goods becomes taxable in the month of August.
As
per section 12(3) earliest of the following is the Time of supply of goods:-
Date of receipt of goods – 12.08.2017
Date of payment - 4.08.2017 (Payment entered in books of recipient on
issue of cheque)
31st day of date of issue of invoice- 6.8.2017
Time of supply shall be 04.08.2017, thus supply of goods became taxable
in the month of August.
The provisions of section 9(4) i.e provisions of 'reverse charge where goods are supplied by unregistered person to a registered person' are not applicable till 31st day of March 2018 vide Notification No.8/2017-Central Tax(Rate).