A document issued by a seller to a buyer to acknowledge a sale transaction. An invoice contains the contact details, item details, quantity, price, total taxable value and the total amount payable by the buyer.
The invoice is issued at the time of a sale transaction and received at the time of a purchase transaction. A purchase invoice is also called as a Purchase Bill or Bill.
Let’s say you are selling pens to your customers. Now, you decide to raise an invoice for your customer John. You sell him 50 pens for the price of Rs.10 each. In the invoice that you raise for him, you’ll find:
Contact Name: John
Item Name: Pen
Price: Rs. 10
Value: Rs. 500
Total Taxable Value: Rs. 45
Total Amount Payable: Rs. 545
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