EXAMPLE-48
When
Service related to training is provided in June 2017. The date of change in rate
of taxation is on 1.06.2017. Following details are in respect of activities for
the months of May and June 2017.
|
S.NO |
Date
of Issue of Invoice
|
Date
of Payment |
Amt
of work done |
|
(a) (b) (c)
|
14.05.2017 08.05.2017 04.06.2017 |
05.06.2017 07.05.2017 28.05.2017
|
220000 140000 500000 |
Answer
Section 14 shall determine the time of supply where there is change in
rate of tax. In the above example, the time of supply would be decided as
discussed below;
When
supply of goods or services made after the change in rate of tax and
(i) Payment is
received afterwards but invoice has been issued before change in tax - Time of
supply shall be
the date of payment received.
In view of the
above provision in above case (a) 05.06.2017 is the time of supply of service
(ii)Both
issue of invoice and payment has been received before change in tax
- Time of supply shall be
Date of payment or Date of issuing invoice Whichever is earlier
In view of the
above provision in above case (b) 07.05.2017 is the time of supply of service
(iii)
Invoice
issued after but payment has been received before change in tax -
Time of supply shall be Date of issuing invoice
In view of the
above provision in above case (c) 04.06.2017 is the time of supply of service