Anil (1638 Points)
31 August 20091) What is the difference between proforma invoice and invoice?
2) Can one book a transaction based on pro-forma invoice without asking for Invoice?
3)While booking imports transaction is it necessary to insist on original physical copy of the invoice or can one just rely on soft copy sent by mail and pass the entry.
Please answer the above questions separately in the order they are asked.
Thanks.
Sanjive Kumar Singh
(CHARTERED ACCOUNTANT)
(79 Points)
Replied 31 August 2009
1. Proforma invoice is just an intimation to invoice based on some preconditions. Whereas invoice is generated after a purchase / sale / service transaction has taken place. Therefore proforma invoice is an intimation of an event that may take place whereas invoice is a indication of an event that has taken place.
2. If you mean booking of expense / purchase then it should not be done on the basis of proforma invoice. Any payment made can be shown as advance payment for values to be received.
3. I am of the opinion that always original copies of the documents should be asked for specially in case where there is duty involvement.
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