I used 'time out' for my DS in his room when he was about this age but not as a 'punishment'. It was if he was beyond it, having a tantrum about something, and if he was not able to be reasoned with - I would take him in his room for two minutes to give us both a break - only used it as a very last resort, if he and I were really cross!
I hated doing it as he got so hysterical, he really hated it - but it was genuine time out for him to be alone so no-one else was 'feeding' his anger...
Other than that, I haven't used actual 'punishments' as have always found a way round things, just can't be that punishy sort of parent. Ways round things have generally been major distraction! It really does work at this age. Also, another major thing is ignoring - rather than trying to impose a consequence for every bad behaviour, ignoring can work, specially if combined with a bit of distraction after ignoring has happened for a minute or two, eg you can start a really interesting activity like water play or something you know they can't resist - baking or something.
I used time out less than ten times with my DS and haven't used it in over six months. He's 3.5 now. I do understand though that I am very different to many parents who do want a bit more 2do it when I say so, because I say so" and I can certainly see the benefits of that, but I guess you can only be the parent you are!