A construction contractor enters a 3-year contract with milestone-based progress payments. The customer WITHHOLDS a specified percentage from each milestone payment, paying it only when the project completes (intended as protection if the contractor fails to deliver). Under Ind AS 115, the contract:

Para 62 of Ind AS 115 — even where there's a gap between performance and payment, there is no significant financing component if the difference exists for reasons OTHER than the provision of finance (e.g., a retention payment to protect the customer from contractor default). The holdback is performance-protection, not financing — no adjustment.