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Time of supply of services under Sec 13(2) (forward charge), if invoice is issued WITHIN the period prescribed under Sec 31, is the earlier of:
ADate of contract execution
BDate of invoice or date of provision of service
CDate of provision of service or date of receipt of payment
DDate of invoice or date of receipt of payment
Answer & Solution
Correct answer: D. Date of invoice or date of receipt of payment
1. Sec 13(2)(a) applies when invoice is issued within the time prescribed in Sec 31(2) (typically 30 days from supply, 45 days for insurer/banker/NBFC).
2. Time of supply is the EARLIER of date of invoice or date of receipt of payment.
3. If invoice is NOT issued within the prescribed time, Sec 13(2)(b) makes it the earlier of date of provision of service or date of payment.
_Source: ICAI BoS CA Final Paper 8, Ch 4 "Time of Supply", §Sec 13(2)(a)_
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