Is SITC “continuous supply of service” under GST?
This query is : Resolved
09 October 2020
Our company has been awarded a contract to Supply, Install, Test and Commission (SITC) Audio and Video (AV) equipment at a club.
Since it is related to immovable property and involves provision of both goods and services, it will fall under Works Contract which is treated as supply of service as per Schedule II.
However will it be a continuous supply of service?
“Continuous supply of services” means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations.
Our service is under contract and it will take more than three months to supply and install all the AV equipment. Payment is also split being; 50% advance, 25% on installation and 25% after final commissioning.
However, service is not recurring. Will it be considered to be provided continuously?
Whether or not it is “Continuous supply of services” will help us to determine when to raise invoices.
Thus, is SITC “continuous supply of service” under GST?
Since it is related to immovable property and involves provision of both goods and services, it will fall under Works Contract which is treated as supply of service as per Schedule II.
However will it be a continuous supply of service?
“Continuous supply of services” means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations.
Our service is under contract and it will take more than three months to supply and install all the AV equipment. Payment is also split being; 50% advance, 25% on installation and 25% after final commissioning.
However, service is not recurring. Will it be considered to be provided continuously?
Whether or not it is “Continuous supply of services” will help us to determine when to raise invoices.
Thus, is SITC “continuous supply of service” under GST?
09 October 2020
No, this is not continuous supply. Your contract is only to supply and install the Audio/Video equipment. Another point is that payment obligation is not on periodic basis but is on the progress of the work like in advance, on supply, on installation etc.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Unregistered suppliers utility
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- ITR 4 and Bank transactions
- TDS AND ITR ISSUE
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
