our Company is started Collecting Advances from Customers (Advertorial & Book sales). but the book is not yet started publishing, currently we are issuing Proforma Invoices for Advance Receipt. But Our clients is not Accepting the Proforma Invoices and demanding the Tax Invoice only in that Case Please suggest me the procedure for Recognizing the revenue or not by issuing the Tax invoice is it correct to issue tax Invoice Please give me the Detailed procedure Very very Urgent
30 November 2011
An invoice presented by one company to another for payment for goods prior to their despatch. This method of invoicing is to ensure payment is received and is often the case when two companies have not traded before. If future trading is anticipated it will then be usual for an account to be set up for the purchasing company with credit facilities.
regarding the procedure please make the tax invoice and provide your buyer.
For advance against sales were received, we need to give proforma invoices only, and without receiving stocks how can they book under purchases, they should show it under advances to suppliers until and unless the stocks were received, tax invoice should be given at the time despatch and if you raise tax invoice, they can claim input duties now, but with out sale how can you remit your out put duties. So it is a question of answering your customers, they will definitely accept your version, if not advice them to contact their tax advisor in this regard.
CAclubindia
