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Sample invoice for services rendered10/31/2023 A pro forma invoice is an estimation that a company sends to a customer before delivering services. On the other hand, debit notes are used to increase the quantity or value of the original invoice.Īnother type of invoice is the pro forma invoice. Credit and debit notes are used for decreasing value and increasing values of previously raised invoices, respectively.įor instance, credit notes are used while the business wants to pass on a discount or provide a refund to its customers or buyers. It is also known by names such as credit memo and debit memo. Next on the list is credit notes and debit notes. The different types of invoices that businesses can raise on their clients or customers.Ī standard invoice is the most common form of invoice used mainly by small businesses and flexible to fit in most industries and billing cycles. What are the various types of an invoice? At the same time, the latter makes examination of quantity and duty easier. The commercial invoice and the packing list are essential for Customs purposes, as the former proves the value of the imported/exported products. Bill of Entry/Shipping Bill, for both import and export. According to current Customs procedures, an importer or exporter must send a commercial invoice and packing list along with the Customs declaration form, i.e. It is mentioned under Section 16 of the CGST Act that the recipient should hold an invoice to claim the ITC.Īpart from GST, the Indian Customs law refers to commercial invoices for import and exports. Under GST, a tax invoice acts as evidence for supply and becomes a crucial document for the buyer or recipient to claim Input Tax Credit (ITC). e-Invoicing involves submitting an already generated standard invoice on a common e-invoice portal or invoice registration portal for validation and authentication by the GST Network. Starting 1st October 2020, the country has moved from voluntary to mandatory e-invoicing requirements, being implemented in a phased manner based on turnover. However, the invoice must have specific fields compulsorily given in Rule 46 of the CGST Rules. There is no particular format notified for an invoice. If you have a GST registered business in India, you have to provide GST compliant invoices to your customers to sell services or goods. It eliminates any doubt about when the payment is due and eliminates the possibility of denying information about the payment. Since an invoice is a legal document that is part of a sale, including the due date in the invoice will keep the consumer informed. These dates signify that the payment is due and will result in several penalties and interest if the payment is not received by the due date. In a general business context, the due date refers to the latest date by when a payment can be made on an invoice before it becomes overdue or late. When it comes to invoicing, including a due date will help facilitate prompt payment. Read our article on the time limit to issue invoices and bill of supply to know more about it. There are separate time limits to issue the invoices for the supply of goods and services. However, the time of raising tax invoices is generally determined by the GST law. Again, a 30-day credit period is applied from the date of the invoice. When it comes to the rendering of services, invoices must be raised monthly by the end of the month. In general trade parlance, for the supply of goods, invoices are raised as soon as the goods are delivered with a usual credit period ranging up to 30 days from the invoice date.
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