Hi Sanjay,
Yes, this arrangement is ok.
Advance invoicing of machinary
Hello, Can we ask our machine supplier to send us GST invoice once month in advance before we actually receive the machine in INDIA. As a customer, we are ready to pay all amount and GST in advance to them. Our supplier has to import the machine on our behalf. The reason to do in this way is to take the advantage of drop in Euro conversion rate now on which final machine value is dependent. The question is, whether this arrangement is legally OK or not. Kind Regards, Sanjay Panwar
Asked 5 years ago in GST
Hi,
- Yes you can ask for invoice from him now and pay the entire amount of invoice but GST will paid at the time of clearnce of machinery. Apart from invoice ask for the receipt voucher also.
- You need to file Form 15CA for which you need actual invoice to process the payment.
OR
- You can ask for proforma invoice and quotations which should contain T&C of full payment before processing of order.
- You need to check whether bank accepts proforma invoice for payment or not.
Thanks
According to me, there should not be any issue in this arrangement.
Hi Sanjay,
Hope you are doing well !
There is no problem in above arrangement.
It is legally ok.
Thanks & Regards,
Payal Chhajed
Hi Sanjay
This arrangement is fine. I do not foresee any complications.
Sanjay ji
you can pay advance payment to your supplier and can save your self from forex against performa invoice. but GST invoice cant issue without movement of goods.
s, this can be by way of advance payments towards purchase. IN your terms of purchase you should clearly include the clause on advance payments.
THe illgality crops in if there is no delivery of asset within time frame.
GST is payable on advance as well so if you are paying advance for machinery then you can pay GST on same and get GST invoice 1 month before.
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