Invoice Terms And Conditions for Indian Business

Invoice Terms And Conditions for Indian Business | Rules, Sample Template

Invoice Terms and Conditions: When you buy a service from a company, you are required to read and sign a document called the “Terms and Conditions.” The usage of the service between the customer and the seller is governed by this written piece of information, which is an important part of the agreement between the buyer and the seller. It has been accepted by law since it demonstrates the service’s dos and don’ts.

A document called “terms and conditions” provides information about the service and accurately explains the company’s rules. Some of the terms and conditions included in any invoice are payment policies, return policies, disclaimer policies, opt-out policies, and so on. On this page let’s learn everything about Invoice Terms and Conditions for Indian businesses in detail.

What Terms And Conditions Should Be On An Invoice?

The terms and conditions for Indian business vary from frim to frim. However, any invoice which has terms and conditions should be devised as follows:

  • Use of basic, uncomplicated, and polite language.
  • Including all of the firm’s and client’s important details.
  • Complete product or service information, including taxes and discounts.
  • The invoice number or reference number.
  • It’s important to mention the payment method.

Invoice Terms And Conditions Template India

Few GST invoice terms and conditions which needs to be included in Indian business are explained below:

  1. Sale Terms and Conditions
  2. Payment Type Terms and Conditions
  3. Advance Payment Terms and Conditions
  4. Warranty Terms and Conditions
  5. Return/Replacement Policy Terms And Conditions
  6. Late Payment Terms And Conditions
  7. Errors And Omissions Excepted

Sale Terms and Conditions

Any possibility of misunderstanding or conflict between the parties will be avoided by clearly defining the terms of sale. As a result, it is critical to include terms of sale such as cost, quantity, single unit cost, delivery date or time of service, and payment method or credit, if applicable.

This is especially important when dealing with cross-border transactions. Mentioning the “liability” of international taxes, tariffs, or any other legislation facilitates the payment procedure.

Payment Type Terms and Conditions

The service provider expects payment right after the goods or service is delivered. It’s also known as “Cash on Delivery” (COD) or “Payable on Receipt” (POR). The transaction or delivery is considered cancelled or invalid if the terms are not followed. It is critical to mention this term or condition, as the client may become displeased if it is not.

Advance Payment Terms and Conditions

It is one of the most common payment terms, in which the service provider requests payment in full or in part before delivering the goods or service. This is common in the service industry and is used to avoid non-payment after the sale. It is common practice to avoid incurring out-of-pocket costs in order to complete a project.

It should be included if handled by the business firm, and likewise, the customer should keep an eye out for such things listed on the contract.

When a client is given credit, there are terms for advance payment. It’s referred to as “Net 7” or “Net 30,” which means pay the balance owed within seven or thirty days of the sales bill’s date. The word informs the client of “when the payment is due.”

However, if the “term Net 7 or Net 30” is not clear to the customer, it can cause confusion. It is therefore recommended to represent in a simple way such as please make the payment within 7 days from Invoice date or so.

The following are some of the abbreviations used in payment terms and conditions:

1% 10 Net 30: If payment is received within 10 days, the customer will receive a 1% discount.
After 10 days, full payment is required, and the overall due date is 30 days from the invoice date.

  • CIA: Cash in Advance
  • COD: Cash on Delivery
  • Contra Payment: Customer payments are deducted from supplies purchased by the customer.
  • Net 10: Payment due in 10 days from invoice date
  • Net 30: Payment due in 30 days from invoice date
  • Net 60: Payment due in 60 days from invoice date
  • Net 7: Payment due in 7 days from invoice date
  • Net 90: Payment due in 90 days from invoice date
  • PIA: Payment in Advance

Warranty Terms and Conditions

The warranty terms of the goods or service must be clearly stated on the invoice, as well as the number of days after which the guarantee will no longer be valid. It should also state when the warranty is no longer valid and make it clear that a warranty does not entail a product return. The invoice must include the warranty terms and conditions. The following are some common warranty terms and conditions in Indian business:

  • Warranty Period
  • The person who provides the warranty.
  • The warranty is either provided by the seller or by the original manufacturer.
  • Information on how to contact us. If a third party should be contacted, provide their contact information.
    For example, in the electronics industry, the warranty is provided by the firm, and the company’s service centre should be called rather than the real vendor.
  • Is there a warrant on the premises or not? For example, if the goods are fixed, such as house fittings such as a refrigerator, the service person will come to the location or the person will have to deliver it to the service centre should be mentioned on Invoice terms and conditions.

Return/Replacement Policy Terms And Conditions

Any small business, especially one that sells goods, must have a return policy. The popularity of your product or service will be determined by the number of returns or refund policies. Simultaneously, you can protect yourself from false claims and demands.

These terms will also help you avoid potential losses from returns or refunds. The terms and conditions on an invoice must include points such as:

  • All products returned for refund/replacement or extended on credit must be returned in “saleable” condition with original packaging, according to some sample terms and conditions that can be incorporated into your retail invoice.
  • Restocking charges applied on return or replacement
  • If received damaged goods or items, what actions to be taken.
  • Number of days within which the product will be replaced

Late Payment Terms And Conditions

To improve the relationship between the supplier and the buyer, it is important to educate the client about late payments and the consequences that follow. It’s always good to include the terms and conditions related to late payment such as:

  • Reminding customer about the due date
  • Financial losses you’ve incurred due to the late payment
  • Payment time

Errors And Omissions Excepted

Errors and omissions excepted (E&OE) is a term used to limit legal liability for potentially incorrect or insufficient information provided in a contractual related document like a quotation or specification. It means that if an error or omission in the invoice is discovered later, it can be corrected with appropriate modifications.

FAQ’s on Retail Invoice Terms and Conditions India

Question 1.
Do invoices have terms and conditions?

Yes, the Invoice must have terms and conditions.

Question 2.
What is the difference between terms and conditions?

The difference between terms and conditions are: a term is a directive in the Purchase and Sale Agreement that describes the contract’s contents and a condition is a clause that must be waived or met by a certain date for the Agreement to take effect.

Question 3.
Write any 5 sample terms and conditions for invoices in Indian business?

The 5 commonly used terms and conditions in invoices are:
1. Sale terms
2. Warranty-related Terms & conditions
3. Return & replacement related terms & condition
4. Payment Related Terms & Conditions
5. Delivery Related Terms & Conditions

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