A purchase order (PO) is a commercial document and first official offer issued by a buyer to a

seller, indicating types, quantities, and agreed prices for products or services. Acceptance of a
purchase order by a seller forms a contract between the buyer and seller, so no contract exists
until the purchase order is accepted. It is used to control the purchasing of products and services
from external suppliers.[1]

Creating a purchase order is typically the first step of the purchase to pay process in an ERP
system.

Companies use purchase orders for several reasons:

 Purchase orders allow buyers to clearly and explicitly communicate their intentions to
sellers
 Sellers are protected in case of a buyer's refusal to pay for goods or services
 Purchase orders help a purchasing agent to manage incoming orders and pending orders
 Purchase orders provide economies in that they streamline the purchasing process to a
standard procedure
 Commercial lenders or financial institutions may provide financial assistance on the basis
of purchase orders. There are various trade finance facilities that almost every financial
institution allows to business people against purchase orders such as:

1. Before Shipment credit facility

2. Post Shipment credit facility
3. Trade Finance facility
4. Foreign Bill Purchase credit facility
5. Bill retirement credit facility
6. Order Confirmation
7. Followup

Electronic purchase orders

Many purchase orders are no longer paper-based, but rather transmitted electronically over the
Internet. It is common for electronic purchase orders to be used to buy goods or services online
for services or physical goods of any type.

But in LCD Local purchase Order in Paper form are commonly and highly used
Invoice
From Wikipedia, the free encyclopedia

For the Japanese company, see Invoice (company).

See also Voucher - (an invoice is within the European union primary legally defined by the EU VAT
directive as an accounting voucher (to verify tax and VAT reporting) and secondly as a Civil law
(common law) document, related to here)

An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale
transaction and indicating the products, quantities, and agreed prices for products or services the
seller has provided the buyer.

Payment terms are usually stated on the invoice. These may specify that the buyer has a
maximum number of days in which to pay, and is sometimes offered a discount if paid before the
due date. The buyer could have already paid for the products or services listed on the invoice.

In the rental industry, an invoice must include a specific reference to the duration of the time
being billed, so in addition to quantity, price and discount the invoicing amount is also based on
duration. Generally each line of a rental invoice will refer to the actual hours, days, weeks,
months, etc., being billed.

From the point of view of a seller, an invoice is a sales invoice. From the point of view of a
buyer, an invoice is a purchase invoice. The document indicates the buyer and seller, but the term
invoice indicates money is owed or owing.

Invoice

INVOICE
Company Name
123 Fake Street
Springfield

Invoice No Date Terms

 Description Amount Owed:

Invoice Total [Currency]

A typical invoice contains[1][2]

 The word invoice (or Tax Invoice if in Australia and amounts include GST).
 A unique reference number (in case of correspondence about the invoice)
 Date of the invoice.
 Credit terms.[3]
 Tax payments if relevant (e.g. GST or VAT)
 Name and contact details of the seller
 Tax or company registration details of seller (if relevant)[e.g. Australia Business Number
(ABN) for Australian businesses.]
 Name and contact details of the buyer
 Date that the goods or service was sent or delivered
 Purchase order number (or similar tracking numbers requested by the buyer to be
mentioned on the invoice)
 Description of the product(s)
 Unit price(s) of the product(s) (if relevant)
 Total amount charged (optionally with breakdown of taxes, if relevant)
 Payment terms (including method of payment, date of payment, and details about charges
for late payment)

In countries where wire transfer is the preferred method of settling debts, the printed bill will
contain the bank account number of the debtor and usually a reference code to be passed along
the transaction identifying the payer.

The US Defense Logistics Agency requires an employer identification number on invoices.[4]

The European Union requires a VAT (value added tax) identification number.
In Canada, the registration number for GST purposes must be furnished for all supplies over $30
made by a registered supplier, in order to claim input tax credits.[5]

Recommendations about invoices used in international trade are also provided by the UNECE
Committee on Trade, which involves more detailed description of the logistics aspect of
merchandise and therefore may be convenient for international logistics and customs procedures.
[

http://www.slideshare.net/venky_1986/presentation-on-c-form

http://taxguru.in/goods-and-service-tax/goods-movement-form-cst-act-1956-e1-e2-form-glance.html

Goods Movement Form under CST Act 1956; C, F, E1- E2

Form at a glance
Posted In GST | Articles | 22 Comments »

1. INTRODUCTION

There are certain type of forms which has been prescribed under central sales tax rules 1957,
form c for making interstate purchase at lower rate, form E1 and E2 used when interstate sale or
purchase which are effected by mere transfer of document of title (subsequent sale), form F used
to transfer goods from one branch to other in different state without making it as sale.

2. ANALYSIS

A) C FORM

It is printed paper form which is issued by VAT department to the registered dealer who makes
interstate purchases of those goods which are mentioned in his RC (registration certificate).
While doing transaction purchasing dealer furnish this form to selling dealer in course of
interstate purchase to get exemption/reduction in sales tax rate. It is defined under section 8(1) of
CST act 1956.

From above chart it is clear that firstly purchasing dealer will furnish form C to the selling dealer
in Punjab to claim tax exemption or reduced rates of taxes (2%) thereafter selling dealer will
submit these form to the department of VAT in Punjab .

One C form can be used for no of transactions for one quarter of financial year.

B) E1 AND E2 FORM

As per section 6(2) of CST act first interstate sale will be taxable, subsequent sale during
movement of good by way of transfer of document is exempt from tax. For making subsequent
sale exempt Form E1 & E2 are used.
From above illustration it is clear that how goods/document of title move from one place to
another. Actual delivery was received by C in Jaipur however between A, B there was only
transfer of title. Only the first sale will be taxable, other subsequent sale will be exempt if dealers
are registered.

In above example A of Mumbai will receive C form from B of Delhi & will issue declaration in
E-I form to B of Delhi .Later on B of Delhi will issue declaration in Form E-II to C of Jaipur
against which C will furnish C form to B (Delhi).

If above chain is broken then the exempt sale will get reversed and CST will be applied on these
transaction.

C) F FORM

With this, goods can be transferred/delivered from one state to another without recognising it as
a sale. For instance the head branch may transfer goods/stock from one state to another to its
branch or agent without becoming liable for CST. It is issued by the VAT department on the
request of the purchasing dealer (branch or head branch) .Forth; the purchasing dealer submits F
form to the selling dealer to claim exemption from making it as CST sale. As per section 6(A) of
CST act F from is mandatory to prove transaction as stock transfer.

Is F form required in case goods are returned? The answer is yes, decided by the hon’ble
Supreme court in case of AMBIKA STEELS that the liability of furnishing F form would be still
there even if stock or goods are required to be sent back.

Single F form may cover consignments of goods transferred during one calendar month.
It is advisable that Registration certificate {RC} should contain the name and address of
branches to which stock is transferred against F FORM {branch transfer} to claim
concessional/nil rate of tax. One F form has to be issued for each month.

Conclusion – Many peoples get confused regarding C, E1 & E2 form. So these forms are
discussed above at glance to remove ambiguity. Proper knowledge of these forms may result in
smart movement of goods between states.

http://www.simpletaxindia.net/2009/03/cst-rate-without-c-form-d-form-input.html

1. What is the percentage of CST chargeable for the sales with C-Form and without C-form.
2. What is the percentage of CST chargeable for the sale of goods to Government
undertaking companies e.g NAL, R&DE etc

Please clarify these things.

Srinivas Bhat

A Bill namely, the Taxation Laws (Amendment) Act, 2007 (Bill No.
13/C of 2007) had been introduced & passed in Lok Sabha in order to further amend the Central
Sales Tax Act, 1956.and amendments done by this bill are applicable from 01.04.2007.

The net main effect of the amendments is as follows:-

1. The rate of CST on inter-State sale to registered dealers (against Form-C) shall stand
reduced from 4% to 3% or the rate of VAT applicable in the State of the selling dealer,
whichever is lower.(Present rate of CST Is 2 %)
2. The rate of CST on inter-State sale other than sale to registered dealers shall be the rate of
VAT applicable in the State of the selling dealer.
3. The rate of CST on inter-State sale to Government Departments shall also be the rate of
VAT applicable in the State of the selling dealer, indicated at (b) above. The facility of
inter-State purchases by Government Departments against Form-D stands withdrawn.
so after these amendments ,tax rates in various possible situation has been explained in the table
given below

SR NO
PARTICULARS
WITH C FORM
WITHOUT C FORM
1
If Goods are exempted from tax unconditionally
Nil
Nil
2
if vat rate in the state from which material sold, is less than the Normal CST rate at present CST
rate is 2 %
vat rate of the state from which goods sold will be applicable
vat rate of the state from which goods sold will be applicable
3
if vat rate in the state from which material sold, is more than the Normal CST rate at present CST
rate is 2 %
2 percent
vat rate of the state from which goods sold will be applicable
4
Sale to unregistered dealer
N.A
vat rate of the state from which goods sold will be applicable
5
sale to registered Dealer
2 percent or state vat rate which ever is less
vat rate of the state from which goods sold will be applicable

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Now point wise answer to your queries are given here under.

1. Sale with C-form rate of CST or Vat rate for that good of seller's state, which ever is less
will be applicable .In case of sale without form C ,Vat rate of seller's state is applicable.
 2. Sale of Govt Department is now treated like a unregistered dealer so Vat rate of the
seller's state is applicable in sale to Govt Departments.

- See more at: http://www.simpletaxindia.net/2009/03/cst-rate-without-c-form-d-form-

input.html#sthash.ZlhNMY1F.dpuf

What is excise duty?

An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods
produced within the country (as opposed to customs duties, charged on goods from outside the
country). It is a tax on the production or sale of a good. This tax is now known as the Central
Value Added Tax (CENVAT)

What are the types of excise duty?

There are three different types of central excise duties which exist in India which are as follows:

Basic - Excise Duty, imposed under section 3 of the 'Central Excises and Salt Act' of 1944 on all
excisable goods other than salt produced or manufactured in India, at the rates set forth in the
schedule to the Central Excise tariff Act, 1985, falls under the category of basic excise duty in
India.

Additional - Section 3 of the 'Additional Duties of Excise Act' of 1957 permits the charge and
collection of excise duty in respect of the goods as listed in the schedule of this act. This tax is
shared between the central and state governments and charged instead of sales tax.

Special - According to Section 37 of the Finance Act, 1978, Special Excise Duty is levied on all
excisable goods that come under taxation, in line with the Basic Excise Duty under the Central
Excises and Salt Act of 1944. Therefore, each year the Finance Act spells out that whether the
Special Excise Duty shall or shall not be charged, and eventually collected during the relevant
financial year.

Which goods are excisable goods?

The term 'excisable goods' means the goods which are specified in the first schedule and the
second schedule to the Central Excise Tariff Act, 1985, as being subject to a duty of excise and
includes salt.

Who is liable to pay excise duty?

The liability to pay tax excise duty is always on the manufacturer or producer of goods. There
are three types of parties who can be considered as manufacturers:
  Those who personally manufacture the goods in question
 Those who get the goods manufactured by employing hired labour
 Those who get the goods manufactured by other parties

Is it mandatory to pay duty on all goods manufactured?

Yes, it is mandatory to pay duty on all goods manufactured, unless exempted. For example, duty
is not payable on the goods exported out of India. Similarly exemption from payment of duty is
available, based on conditions such as kind of raw materials used, value of turnover (clearances)
in a financial year, type of process employed etc.

What is the consequence of evading payment of excise duty?

Under the different sections of the central excise act, the fines for evading tax can range from
twenty-five to fifty per cent of the amount of duty evaded. When you look at the amount of
excise you may have to pay, this is a rather large amount and along with the financial
repercussions, you also have to encounter a tarnished image.
http://www.thesolarindia.com/article/list-of-specified-renewable-
energy-devicessystems-exempted-from-excise-duty/

List of Specified Renewable Energy Devices/Systems exempted from

Excise duty
1. admin
2. December 15, 2011 9:59 am

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List of Specified Renewable Energy Devices/Systems exempted from

Excise duty

1. Flat plate solar collectors

2. Black continuously plated solar selective coating sheets (in cut lengths or in coils and fins
and tubes)

3. Concentrating and pipe type solar collectors

4. Solar cookers

5. Solar water heaters and systems

6. Solar air heating systems

7. Solar low pressure steam systems

8. Solar stills and desalination systems

9. Solar pumps based on solar thermal and solar photovoltaic conversion

10. Solar power generating systems

11. Solar photovoltaic modules and panels for water pumping and other applications

12. Solar crop driers and systems

13. Wind operated electricity generators, their components and parts thereof

14. Water pumping windmills, wind aero-generators and battery chargers

15. Bio-gas plants and bio-gas engines

16. Agricultural, forestry, agro-industrial, industrial, municipal and urban waste conversion
devices producing energy

17. Equipment for utilizing ocean waves energy

18. Solar lantern

19. Ocean thermal energy conversion systems

20. Parts consumed within the factory of production of such parts for the manufacture of goods
specified at S.Nos.1 to 19 above

21. Solar photovoltaic cells

Source:www.mnre.gov.in/

Sales is sales, right? If you have certain skills and a good bit of experience, you can sell to retail
or corporate markets without difficulty. Well, maybe. There are some important similarities and
differences between the approaches and skillsets required for successful B2B vs B2C sales.
How are B2C and B2B sales similar?
1. They both require a sales process. B2B lead generation may take longer and involve more
nurturing, but you still need well defined strategy and tactics in both arenas.
2. They both require alignment with marketing. If your online and offline marketing messages
don't align well with sales communications, potential customers will shy away.

3. They both require excellent customer service. Once a sale is made, the ability a customer has to
reach your support team and get helpful service has everything to do with retention and churn
rate.

How are B2B and B2C sales different?

1. Emotional vs rational. Retail sales are often emotional, based on a perceived immediate need,
while corporate sales are planned, evaluated and longer term. Online shopping has changed this
to some extent, allowing customers to research and compare prior to purchase.
2. Cheap vs Expensive. Again, not strictly true, but on average B2C sales have a lower price point
and are less often paid out over time. There is a crossover where B2B sales involve products such
as office supplies. Corporate services are often retainer-based over a long term. Luxury B2C
items such as houses and cars are paid over a long term as well.

3. One-off vs Relationship. Retail point-of-sale purchases are often done without prior contact and
with no ongoing relationship between sales person and customer. This is seldom true in the B2B
arena, where the entire sales process is often based on relationship building and trust.

4. Experience. While there are many B2C sales people with years of experience, the learning (and
success) curve is certainly shorter than in B2B. B2B sales people must know how to work with
senior decision makers in addition to knowing their products cold. That can take years to develop
and the right personality to make it work.

So which transition is easier, B2C to B2B or B2B to B2C?

They can both be tricky. B2C sales people are accustomed to a relatively short buy cycle and a
much closer connection with marketing and e-commerce. Switching to the B2B world would
tend to frustrate most B2C sales people due to the longer term strategy and requirements for
relationship building. On the other hand, moving from B2B to a retail environment might prove
to be too intense for the average B2B sales professional, with little of the predictability or
planning they are used to.

In either case, while building an effective sales force, you should take into account the
backgrounds of your sales people. Are they the right fit for your products, services and markets?
Are they transitioning from B2B to B2C or vice versa? Many companies find that significant
training is required to achieve a high level of sales performance as these transitions present
themselves. You may want to consider sales force outsourcing as a cost-effective alternative.

Sales vs Marketing Activities

The typical goal of marketing is to generate interest in the product and create leads or
prospects. Marketing activities include:

 consumer research to identify the needs of the customers

 product development – designing innovative products to meet existing or latent needs

 advertising the products to raise awareness and build the brand.

 pricing products and services to maximize long-term revenue.

On the other hand, sales activities are focused on converting prospects to actual paying
customers. Sales involves directly interacting with the prospects to persuade them to purchase
the product.

Marketing thus tends to focus on the general population (or, in any case, a large set of people)
whereas sales tends to focus on individuals or a small group of prospects.

Marketing and sales are both aimed at increasing revenue. They are so closely intertwined that
people often don’t realize the difference between the two. Indeed, in small organizations, the
same people typically perform both sales and marketing tasks. Nevertheless, marketing is
different from sales and as the organization grows, the roles and responsibilities become more
specialized.

Comparison chart</> Embed this chart

Marketing Sales
Broader range of activities to sell
product/service, client relationship etc.;
makes customer demand match the products
Approach determine future needs and has a strategy
the company currently offers.
in place to meet those needs for the long
term relationship.

Overall picture to promote, distribute, price

products/services; fulfill customer's wants
Focus fulfill sales volume objectives
and needs through products and/or services
the company can offer.

Analysis of market, distribution channels,

competitive products and services; Pricing
Process Usually one to one
strategies; Sales tracking and market share
analysis; Budget

Scope Market research; Advertising; Sales; Public Once a product has been created for a customer
relations; Customer service and satisfaction . need, persuade the customer to purchase the
 Marketing Sales
product to fulfill her needs

Horizon Longer term Short term

Strategy pull push

Marketing shows how to reach to the

Priority Customers and build long lasting Selling is the ultimate result of marketing.
relationship

Sales is the strategy of meeting needs in an

Marketing targets the construction of a opportunistic, individual method, driven by
Identity brand identity so that it becomes easily human interaction. There's no premise of brand
associated with need fulfillment. identity, longevity or continuity. It's simply the
ability to meet a need at the right time.