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When an invoice is issued for goods supplied where the SUPPLIER receives a small EXCESS amount up to Rs 1,000 over invoice value, the time of supply for that excess can, at the supplier's option, be:
ADate the original supply was made
BDate the excess was received
CEarlier of invoice and receipt date
DDate of issue of invoice for that excess
Answer & Solution
Correct answer: D. Date of issue of invoice for that excess
1. Proviso to Sec 12(2) — for small excess up to Rs 1,000 over invoice, time of supply (at supplier's option) is the date of issue of invoice for that excess amount.
2. This avoids artificial advance-treatment of small over-payments.
3. Above Rs 1,000 excess, the normal Sec 12(2) rule (earlier of payment/invoice) applies.
_Source: ICAI BoS CA Final Paper 8, Ch 4 "Time of Supply", §Sec 12(2) proviso_
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