![]() There is no such specific term as Pro forma Invoice under GST. Signature of the authorised person of the supplier.Certification required by the Customs authorities, if any.Terms and conditions of the sale to be proposed.Description of the goods to be supplied, their names, quantities, value, taxes, and rates.Following are the details mentioned on a Proforma invoice: The contents of a Pro forma Invoice are similar to that of the invoice except for its title. What are the contents of the Pro Forma Invoice? Provides evaluation of the intricacies of cross-border transactions like the exchange rates, currency, interest, and credit options available.Provides Contact details for future communication between the parties.Enables calculation of taxes and Customs duties.To provide the details relating to shipping and other charges.Affirms that the supplier is committed to providing the goods or services at the respective rates mentioned on the said document.Provides for estimated values of the transaction.Provides a clarification of the terms and conditions of the future transaction.It acts as a draft Invoice or a replica of the Sales Invoice in all aspects.It is issued before the tax or sales invoice, and the amount mentioned therein is expected to be more or less equal to the amount of the transaction.Ī Pro Forma invoice is used in almost all business sectors but is mostly used in imports and exports to enable the smooth flow of goods through the customs frontiers. ![]() This document is issued to the buyer to get an idea about the rate estimations and take an informed decision. ![]() It contains all particulars of the goods and services intended to deliver and consists of the estimated rates. Neither of the parties can sue the other based on the particulars mentioned in the Pro Forma Invoice. This is not a final invoice and is not binding on either of the parties as it does not bear any legal validity. ![]() This term in itself differentiates the document from the regular Sales invoice.Ī Pro Forma Invoice is prepared by the seller and issued to the buyer before delivering the goods or services. What is a Pro Forma Invoice?Ī Pro forma invoice means a document that looks exactly similar to the Tax or Sales Invoice, except that the term ‘ Pro Forma Invoice’ is mentioned on the document at the top in bold. Some of the documents are Tax Invoice, Pro forma Invoice, Quotation, Purchase Order, Estimates, etc. Right from the enquiry up to the conclusion of the transaction, there is an exchange of documents, each having its name and purpose. There are multiple documents issued from buyer to seller and vice versa during the process of any transaction. However, not all such documents can be claimed to be an invoice. On the other hand, the buyer is bound to make the payment as per the terms and conditions mentioned on the said invoice. While trading, invoices play a huge role in confirming a transaction and are proof of a binding contract between the buyer and a seller wherein the seller is bound to deliver the goods or services. In Latin, the term ‘ Pro forma ’ means ‘for the sake of form’ or ‘as a matter of form’. It contains particulars of the goods or services yet to be delivered to the buyer. ‘ Pro forma Invoice ’ is a document similar to the invoice. ![]()
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