Question

What is the purpose of the supplier’s invoice?

Answer 1

Supplier's invoice is a document showing the details of item and the amount of such items provided by the supplier to the buyer at a mentioned date.

It has following purposes-

(a) It serves as a documentary proof for the items supplied, date of supply and place of supply.

(b) It is essentially required to claim input tax credits for the buyer.

(c) It is required to claim any warranty or defects or return allowances by the buyer.

(d) It serves a useful tool for computing amount due or payable to the supplier.

(e) It is a record which has to preserved by the buyer for audit purposes.