Definition of Continuous Supply of Service

It means

Continuous supply of service for 3 month or more with periodic payment


Any service notified by Central Government as Continuous Supply of Service with or without condition


Point of Taxation In case of Continuous supply of service

In this case, service goes on continuously and there is no end date.

However, payment is made periodically on completion of event in contract (for example every month)

In this case, date of event shall be deemed to be date of completion of such service for the purpose of this rule



Suppose Max Security Agency Pvt Ltd enters an agreement to provide Security guards to a Client A Ltd for 1 year starting from 1 June 2016 for 120000 p.a.

As per Contract,invoice is to be issued monthly for Rs 10000 per month on last day of each month.

Is it a Continuous supply of Service?

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What is date of completion of Service Provided for June?

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What is the last date of issuing an Invoice?

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Suppose Bill actually issued on 25 July and payment received on 14 August,When is Service tax payable

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.