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For continuous supply of services where the due date of payment IS ascertainable from the contract, the invoice shall be issued:
AOn the date of receipt of payment
BOn or before the due date of payment
C30 days after each payment
DAt the end of the contract
Answer & Solution
Correct answer: B. On or before the due date of payment
1. Sec 31(5)(a) — if the due date is ascertainable from the contract, the invoice is to be issued on or before that due date.
2. If due date is NOT ascertainable, Sec 31(5)(b) requires invoice on or before the date of receipt of payment.
3. If linked to completion of an event, Sec 31(5)(c) ties it to completion of that event.
_Source: ICAI BoS CA Final Paper 8, Ch 4 "Time of Supply", §Sec 31(5)(a)_
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