CAF-2 · Chapter 17 · Question 2 of 15
ABC Ltd entered into a hire purchase agreement to supply a machine to a customer on 1st May. The machine was physically delivered on 15th May, and the first installment was received on 1st June. According to the Sales Tax Act, 1990, what is the "time of supply" for this transaction?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A) 1st May
Explanation
The "time of supply" in relation to a supply of goods under a hire purchase agreement means the time at which the agreement is entered into.
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