In case of associated enterprises located within India, the time of supply in terms of
Section 13(3) shall be the earliest of the following:
(a) Date of payment as per books of accounts of the recipient; or
(b) Date on which payment is debited in the bank account of the recipient; or
(c) Sixty days from the date of issuing invoice or any other document, by whatever
name called, in lieu thereof by the supplier; or
If it is not possible to determine the time of supply under the aforesaid clauses, the time
of supply shall be the date of entry in the books of account of the recipient of supply.
Thus, the same provisions as applicable to a supplier who is not associated enterprise
will apply for services provided by associated enterprises located in India.
Where associated enterprises is located outside India, the time of supply shall be the
earliest of the following dates:
(a) Date of entry in the books of accounts of the recipient; or
(b) Date of payment.
| Particulars | Non-associated enterprises | Associated Enterprises |
| Date on which payment is entered in books of accounts | August 14, 2017 | August 14, 2017 |
| Date on which payment is debited to bank account | August 17, 2017 | August 17, 2017 |
| Date of issuance of invoice | August 10, 2017 | August 10, 2017 |
| Sixty days from the date of issuing invoice | October 08, 2017 | October 08, 2017 |
| Date of entry in the books of accounts of the recipient | August 10, 2017 | August 10, 2017 |
| Time of supply | August 14, 2017 | August 10, 2017 |
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF SERVICES: FAQ NO. 20)