Continuous Supply of Services

'Continuous supply of service' is any service that can be provided under a contract for more than three months, or any service that the Central Government has notified as such a service.

In such cases, the taxable event depends on the contract between the parties because the taxable event is the date of payment for the service as mentioned in the contract. However, if the payment is received or an invoice is issued before the date mentioned in the contract, the point of taxation is the actual date of payment or actual date of invoice, whichever is earlier.