TMI BlogTime of Supply of Services- Under Reverse ChargeX X X X Extracts X X X X X X X X Extracts X X X X ..... services, shall be issued within a period of 30 days from the date of the supply of service: Where the supplier of services is an insurance companies/ banking companies/ financial institutions including NBFCs the period within which the invoice or any document in lieu thereof is to be issued shall be 45 days from the date of the supply of service. [ First proviso rule 47 of CGST Rules ]. In case of insurance companies / banking companies / financial institutions including NBFCs / telecom companies / notified supplier of services making taxable supplies between distinct persons as specified in section 25 , invoice may be issued before or at the time of recording such supply in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of accounts, or Debit date in the bank account However, if it is not possible to determine the time of supply of services under RCM under clause (a) or clause (b) of section 13(3) then the time of supply determined as per Second Proviso of Section 13(3) of CGST Act 2017, The date of entry of the transaction in the books of accounts of the recipient of supply. Note: - Exception on services received from associated enterprises located outside India section 9(3) 9(4) of CGST Act 2017 is determined in terms of section 13(3) of CGST Act 2017. In such cases, the time of supply will be the earlier of date of entry in the books of account of the recipient of supply or the date of payment thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the supplier. Date of receipt of payment/ advance (whichever is earlier ) Credited in the books of accounts, or Debit date in the bank account In other words If make the payment within 60 days from the date of issue invoice, then time of supply of services under RCM will be date of payment. If make the payment after 60 days from the date of issue invoice, then time of supply of services under RCM will be date of issue of invoice. Second Proviso of Section 13(3) of CGST Act 2017, If it is not possible to determine the time of supply any using these parameters, then the time of supply will be the date of entry of the services in the books of account of the recipient of supply. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Date on which services are provided by Mario Inc. 26 th July Date on which invoice is issued by Mario Inc. 18 th August Date on debit in the books of account of SPAN ltd. 30 th October Date on which payment is made by SPAN ltd. 23 rd December Since SPAN ltd. holds 51% share of Mario Inc, SPAN ltd. And Mario Inc associates enterprises as per section 92A of the provision of income tax act 1961. As per third proviso of section 13(3) of CGST Act 2017, time of supply is the earlier of the following two dates Date of entry in the books of account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
