CBIC has issued a recent clarification on Time of Supply in respect of supply of services of construction of road and maintenance thereof of…

(a) Since in HAM model of NHAI, periodical payments are spread over the contract period in the form of installments, it is a 'continuous supply of services'. It has been clarified by CBIC vide a circular that the time of supply of services under HAM contract, including construction and operation and maintenance portion, should be: (I) in case where the invoice is issued on or before the specified date (due date of payment) or the date of completion of the event specified in the contract, as applicable: (a) date of issuance of invoice or (b) date of receipt of payment whichever is earlier. (II) in case where invoices are not issued on or before the specified date (due date of payment) or the date of completion of the event specified in the contract: (a) date of provision of the said service (i.e., the due date of payment as per the contract) or (b) date of receipt of the payment whichever is earlier. (a) Alternative Services by an old age home run by Central Government, State Government or an entity registered under section 12AA or 12AB of the Income-tax Act, 1961 to its residents (aged 60 years or more) against consideration up to 25,000 per month per member, provided that the consideration charged is inclusive of charges for boarding, lodging and maintenance.