Normally we raise a pro forma invoice for receiving advance payment, but one of the company is asking us to raise a Normal Invoice for advance payment. should appropriate vat & excise are levied in this invoice for receiving advance payment for which the sales would happen in future date ?
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Invoice for advance payment
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excise applicable when goods removed from factory. here in advance receipt from customers no goods move from your factory so excise does not apply in my view.
I think invoices are raised at the time of sale. An advance payment is just a payment in advance. So,
- If the goods sale is being effected now, and only the delivery is pending for a future date, then you should have no problem in issuing the normal invoice.
- If the goods sale is not happening now, then how could one issue a invoice with prices, VAT and excise which may change in the future? If there is an agreement/contract/deal which fixes sales prices at a future date then that should be written as terms and conditions of agreement etc.
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