Following provisions will be applicable for issuance of invoice in case of supply of Goods.
A. General Rule: Timing to issue invoice for supply of goods will be as follows:
s Before or at the time of removal of goods where supply involves movement of goods or
s Before or at the time of delivery of goods or making available to the recipient where supply does not involve movement of goods.
Removal of goods, means:
1. dispatch of the goods for delivery by the supplier thereof or by any other person acting on behalf of such supplier, or
2. collection of goods by the recipient thereof or by any other person acting on behalf of such recipient.
B. Continuous Supply
In case of continuous supply of goods, where successive statements of accounts or successive payments are involved the invoice shall be issued earliest of the following:
time when each statement is issued,
time when each payment is received.
Continuous supply of goods means
s supply of goods which is provided or will be provided
s continuously or on recurrent basis
s under a contract.
s It may or may not be through means of a wire, cable, pipeline or other conduit.
s The supplier sends invoice to the recipient on a periodic basis.
C. Goods Sent on Approval:
If the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply will take place, the time of supply shall be earliest of the following:
i. Time when it becomes known that supply has taken place or
ii. Six months from the date of removal.