EXAMPLE

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