Mou/ agreement

Dear Sunny sir

1.It is not compulsory to enter MOU, But it is advisable to entere in to formal agreement on normal paper (contract of outsourceing) between the both the party. as it usefull in case of future disput beween the party.

2. Even if persone issuing bill on mutul consent basis and payment made to that after deducting tax in not a sufficiant enough. Issue will arose when we have to prove that on what basis payment made/receive, so it is advisable to enter in agreement or MOU.

Thank you

Appreciate your prompt reply.

The other side - If a person makes a purchase of goods, then simply based on Invoice - payments are made. No such agreements / MOUs are made in majority of cases specifically in SMEs.