Invoice vs. proforma invoice.

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Pankaj Agrawal (Querist)
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31 May 2014 I work for a telecom service provider. We issue annual advance bills to our clients. i.e. bills are issued in March for next financial year. We are paying Service Tax in April as per POT. But, my auditor says that we must issue a proforma invoice and may pay service tax on receipt of payment.

Amol S Joglekar

Amol S Joglekar (Expert)
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31 May 2014 proforma invoice as the word suggests is the invoice in a pro form. So to say, it is the glimpse of the would be invoice......that this is how the final invoice is going to be........ coming to the real part..... merely because you term a particular piece of paper as 'proforma invoice' will NOT make it proforma. In your case, as per the terms and conditions between SP and customers.....the amount falls due on the 1st day of April....

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