Difference between proforma invoice and provisonal invoice

by sreevani in Q n A - Find answers to your questions

sreevani

17 85 1.94k

11 years ago

Can any one tell me the difference between Proforma Invoice and Provisional Invoice?

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sreevani

17 85 1.94k

11 years ago

#343586

Can we deduct TDS on proforma invoice?

We have received a provisional invoice for which I have deducted TDS and booked it in my accounts. But the Party who have issued that Invoice have not booked in his accounts. Now they are asking me to return back the Provisional Invoice, and saying that they will give me the proforma invoice.

Is this correct??

Suny Ag

253 20k 141.2k

11 years ago

#343588

Can we deduct TDS on proforma invoice?

We have received a provisional invoice for which I have deducted TDS and booked it in my accounts. But the Party who have issued that Invoice have not booked in his accounts. Now they are asking me to return back the Provisional Invoice, and saying that they will give me the proforma invoice.

Is this correct??

Proforma invoice is only an idea but provisional invoice is almost like an actual invoice which is not yet posted in ledgers until final deal is made or payment not received, it can be used for quotations etc but not for taxation purpose.

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Thank you said by: sreevani

sreevani

17 85 1.94k

11 years ago

#343604

I have booked invoices as a provision only (In the year ending), but as I have to consider those invoices for my expenditure, I have deducted TDS and paid. I hope this is correct

Suny Ag

253 20k 141.2k

11 years ago

#343622

I have booked invoices as a provision only (In the year ending), but as I have to consider those invoices for my expenditure, I have deducted TDS and paid. I hope this is correct

You will have to clarify about your provisional invoices first. What are the items/services you have utilised by those invoices.

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sreevani

17 85 1.94k

11 years ago

#343623

Those Invoices are related to machinery hiring, OB Handling, Drilling and Blasting.
31st march we asked them to give us the invoices, so as they had no exact figure of production, they gave us the provisional Invoice.
So I thought that some how they will give us the original which we have to book in withing March 31st, so I deducted TDS. When I asked them to give final Invoice, they are saying that, we have not booked those invoices in the previous year, and our accounts are also finilized, so we cannot change anything. By saying this they are asking us to return back the provisional invoices

Suny Ag

253 20k 141.2k

11 years ago

#343723

Those Invoices are related to machinery hiring, OB Handling, Drilling and Blasting.
31st march we asked them to give us the invoices, so as they had no exact figure of production, they gave us the provisional Invoice.
So I thought that some how they will give us the original which we have to book in withing March 31st, so I deducted TDS. When I asked them to give final Invoice, they are saying that, we have not booked those invoices in the previous year, and our accounts are also finilized, so we cannot change anything. By saying this they are asking us to return back the provisional invoices

They are right, since your accounts were not yet settled they are probably not bound to give you final bills unless you have made up your mind and finalized a deal. You can probably make amendments in your return later if the amount in question is big and your CA permits.

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anil

220 6.73k 39.2k

11 years ago

#343731

Can we deduct TDS on proforma invoice?

We have received a provisional invoice for which I have deducted TDS and booked it in my accounts. But the Party who have issued that Invoice have not booked in his accounts. Now they are asking me to return back the Provisional Invoice, and saying that they will give me the proforma invoice.

Is this correct??

No difference between proforma invoice and provisional invoice. Return them proforma invoice and get invoice. Deducting TDS on proforma or proforma invoice is not correct. Indeed it is not sale. It is like offer to sale.

Gulshan Kumar Ajmani

3.48k 21.9k 176.9k

11 years ago

#343793

Can we deduct TDS on proforma invoice?

We have received a provisional invoice for which I have deducted TDS and booked it in my accounts. But the Party who have issued that Invoice have not booked in his accounts. Now they are asking me to return back the Provisional Invoice, and saying that they will give me the proforma invoice.

Is this correct??

No difference between proforma invoice and provisional invoice. Return them proforma invoice and get invoice. Deducting TDS on proforma or proforma invoice is not correct. Indeed it is not sale. It is like offer to sale.

Proforma invoice is actually not an invoice but only a quotation. This is not for any transaction. But provisional invoice is actual one subject to replacement with final invoice.

For clarity on different types of invoices see:

http://en.wikipedia.org/wiki/Invoice

G. K. Ajmani Tax consultant
http://gkajmani-mystraythoughts.blogspot.com/

chinmoymukherjee

934 14.7k 122.3k

11 years ago

#343857

I don't see any difference between the two as both these documents are not binding documents being ones of preliminary nature preparatory to the final invoice being raised. As far as tax implications are concerned I believe TDS provisions would apply on payments being made to parties or their accounts being credited irrespective of the fact if it is pro forma or otherwise as tax authorities don't look at the nomenclature of any document but at the heart of a transaction.

anil

220 6.73k 39.2k

11 years ago

#343876

Can we deduct TDS on proforma invoice?

We have received a provisional invoice for which I have deducted TDS and booked it in my accounts. But the Party who have issued that Invoice have not booked in his accounts. Now they are asking me to return back the Provisional Invoice, and saying that they will give me the proforma invoice.

Is this correct??

No difference between proforma invoice and provisional invoice. Return them proforma invoice and get invoice. Deducting TDS on proforma or proforma invoice is not correct. Indeed it is not sale. It is like offer to sale.

Proforma invoice is actually not an invoice but only a quotation. This is not for any transaction. But provisional invoice is actual one subject to replacement with final invoice.

For clarity on different types of invoices see:

http://en.wikipedia.org/wiki/Invoice

Sir is it possible to deduct TDS or charge any taxes in provisional invoice?

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