08 April 2020
What would be the time of supply in case a painter gives his paintings to a gallery. If the painting is sold the gallery keeps a certain sum for itslef and the rest is given to the painter, and if it is not sold then the painting is given back to the painter. The gallery only recognizes an income if a painting is sold. It doesn't charge a commission for only displaying the painting. How should the transaction between the painter & the gallery be recognized ? Is it a supply of goods or services? Should it be treated on Goods on Approval Basis? Please suggest regarding the same.
10 April 2020
This will be supply of Goods fall under heading 9701. The time of supply is sale of the painting to the customer subject to agreement with the Gallery that the painting is received by them for display and the ownership of the painting remains with the artist.
CAclubindia
