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Where a continuous supply of services is linked to completion of an event, the invoice shall be issued:
AAt the start of the event
BOn or before the date of completion of the event
C30 days after the event
DAt year-end
Answer & Solution
Correct answer: B. On or before the date of completion of the event
1. Sec 31(5)(c) — where payment is linked to completion of an event, the invoice is to be issued on or before the date of completion of that event.
2. Example: milestone-based construction contracts.
3. Time of supply is then the earlier of invoice or payment under Sec 13(2).
_Source: ICAI BoS CA Final Paper 8, Ch 4 "Time of Supply", §Sec 31(5)(c)_
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