continuous supply of service

There are three important conditions to be satisfied in order to be a continuous supply of services:

a) The services should be provided continuously or on recurrent basis

b) The contract period should be exceeding three months

c) The payment obligations should be periodical

“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 and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify;

The contract should be a case of periodic billing and periodic payments - i.e., the billing and receipts thereto should be on a periodic basis (say for e.g.: every fortnight; every month etc.) and not one-time. Further, the contract should specify this periodicity/ frequency of billing/ payment.

• Where the due date of payment is ascertainable from the contract, the invoice will be issued on or before the due date of payment.
• Where the due date of payment is not ascertainable from the contract, the invoice will be issued before or at the time when the supplier of services receives the payment.
• When the payment is linked to the completion of an event, the invoice will be issued on or before the date of completion of that event.