Beniwal Ltd., Mumbai, holds 51% of shares of Butler Inc., a USA based company. Butler Inc. provides business auxiliary services to Beniwal Ltd. From…
CA Final · Indirect Tax Laws · MTP · September 2025
Beniwal Ltd., Mumbai, holds 51% of shares of Butler Inc., a USA based company. Butler Inc. provides business auxiliary services to Beniwal Ltd. From the following details, determine the time of supply of service provided by Butler Inc: Agreed consideration US $1,00,000 Date on which services are provided by Butler Inc. 16 th June Date on which invoice is issued by Butler Inc. 19 th August Date of debit in the books of account of Beniwal Ltd. 30 th September Date on which payment is made by Beniwal Ltd. 23 rd December
Suggested Answer and Working Notes:
Since Beniwal Ltd. holds 51% shares of Butler Inc., Beniwal Ltd. and Butler Inc. are 'associated enterprises' as per section 92A of the Income-tax Act, 1961. In case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply is the earlier of the following two dates: Date of entry in the books of account of the recipient of supply [which is Beniwal Ltd. in the present case] 30 th September OR OR Date of payment [by Beniwal Ltd. in the present case] 23 rd December Thus, time of supply is 30th September.
Topics: Time of Supply
Related Questions in this Topic
- Kothari Ltd., Mumbai, holds 51% of shares of Wilson Inc., a USA based company. Wilson Inc. provides business auxiliary s...
- Determine the time of supply for the purpose of the payment of tax in each of the following independent transactions wit...
- Kanhaiya Lal checked-in at the 'Royal Tourist Lodge' in Madurai on 15th March. The room rent for the same was 900 per da...
- M/s Murty and Sons Ltd (MSL) is dealing in property business and is registered under GST since 2021 in Bengaluru, Karnat...
- M/s Vijay Communication Ltd., a registered telecom operator, is planning to bid for securing the right to use spectrum o...