Taxation - Income TaxQuestion 5608 of 146
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12. The due date of issuance of invoice and the value of such invoice issued for work contract is:

Options

A18-04-2024 and ` 2,00,000
B31-03-2024 and ` 2,00,000
C31-03-2024 and ` 1,20,000
D30-04-2024 and ` 1,20,000 (2 Marks) TAXATION
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Correct Answer

Option C31-03-2024 and ` 1,20,000

All Options:

  • A18-04-2024 and ` 2,00,000
  • B31-03-2024 and ` 2,00,000
  • C31-03-2024 and ` 1,20,000
  • D30-04-2024 and ` 1,20,000 (2 Marks) TAXATION

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Detailed Solution & Explanation

Correct Answer: Option **C** **Explanation:** 1. **Applicability of Section 31(6):** Under Section 31(6) of the CGST Act, 2017, where the supply of services ceases before the completion of the supply, the invoice must be issued at the time when the supply ceases. - In this case, the painting contract ceased abruptly on 31-03-2024 due to a dispute. - Therefore, the due date for issuing the invoice is the date of cessation, which is **31-03-2024**.
2. **Value of the Invoice:** Section 31(6) also states that the invoice shall be issued to the extent of the supply made before such cessation. - The work completed up to the date of cessation (31-03-2024) is 60%\displaystyle 60\%. - Total contract value is ₹ 2,00,000. - Value of invoice = 60%×2,00,000=1,20,000\displaystyle 60\% \times ₹ 2,00,000 = ₹ 1,20,000. - Thus, the due date of invoice is **31-03-2024** and its value is **₹ 1,20,000**. Hence, **Option C** is the correct answer.

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