1/31/2024 0 Comments Commercial invoicesIf the supply involves the movement of goods, the invoice has to be raised on or before the removal of goods for supply from the location of the supplier to the buyer. Time Limit for Raising a Commercial Invoice Under Indian LawĪs per the GST laws, a registered taxable person who supplies goods subject to taxes must mandatorily issue an invoice depicting the nature, quantity, and value of goods, the tax chargeable on those goods, and additional information may be necessary. If submitted, a commercial invoice cum packing list would fulfil the criteria required by the Customs authorities for proper import or export procedures since both documents were found to have similar fields.Īs per the Foreign Trade Policy, to carry out import and export activities, the following documents are mandatory:. One among them is the commercial invoice. The CBIC requires certain mandatory documents to be submitted as part of the import or export procedures. Since the commercial invoice is relatively detailed and can be used as proof, there is no way the buyer can escape payment of the same. It is an efficient tool to maintain customer relationships. The commercial invoice contains all the details of a regular invoice and can be used as a reminder for payments due. The description of goods in terms of quality, quantity and price enables the importer to cross-check and verify the contents of the shipment to see if they correspond to the contents mentioned in the commercial invoice. Since a commercial invoice contains all the transaction details, including the details of the buyer, seller, and description and value of goods, it constitutes an essential part of the evidence that the sale transaction has taken place.Ī commercial invoice is a legal document evidencing a sale transaction and therefore plays a vital role in ensuring payment for the same. The importance of a commercial invoice can be seen in the following manner-Ĭommercial invoices are a mandatory document in the import and export procedures and constitute an important part of the paper trail for transactions relating to exports and imports. It contains the full description of goods sold, their quantities, and value as previously agreed upon by the parties. It is mainly used for clearance purposes with regard to customs and helps in the determination and assessment of duties and taxes payable. In simple words, a commercial invoice is an export document that serves as legal evidence of a sale transaction between the buyer and the seller. Meaning and Importance of a Commercial Invoice
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