About buying things for your research.

This document is a collection of tips and recommendations for buying things for your research work. It is a "work in progress", so new things may added with time.

Your suggestions are welcome. Email: jb@iitb.ac.in

What is a bill?

For purposes of our accounts section, you must produce a bill in order to settle an advance you have taken to buy something. A bill is a loose term. It usually means a cash memo. It could also mean an invoice+reciept combination. You must tell the vendor that you need a "pucca" bill (it may cost you a bit more; see later).
With VAT being enforced, most vendors stamp the words "VAT Invoice" even on cash memos. It is best to take a receipt with such cash memos, as our accounts section is unclear on the need for receipts when the words "cash memo" as well as "tax invoice" are there on a cash memo.

A cash memo is a piece of printed paper which must have the following:

  1.   The words "Cash Memo" at the top. Other similar sounding words will NOT do. So "Estimate Memo", "Memo", "Credit Memo" etc. are NOT acceptable.
  2.   A serial number, usually printed with a numbering machine. A hand-written number is also accpatable.
  3.   The name of the company/shop/firm printed on top, or rubber-stamped.
  4.   The total amount paid.
  5.   The words "paid" written somewhere on the cash memo.
  6.   A signature.
  An invoice must similarly have all the elements described above. Of course, it will have the words "Invoice" rather than cash memo. In addition, the invoice must
have an additional piece of paper called the reciept, which clearly states that "the amound in Invoice No. xxx has been paid in full by cash", and it must cary a
signature identical to the signature on the Invoice. If the amount is > Rs. 500, the signature on the reciept should be on a revenue stamp of one rupee. There is more on invoices and receipts later in this document.

  Often you will be told that the cost of the item you are buying will be more if a bill is given. This is due to taxes and levies that must be paid on all "pucca" (i.e.,
accounted) transactions. We must gracefully accept this, and get the bill for the full amount paid. Here is some information on Invoices and Receipts for your information:

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Both invoice and receipt should each be on printed letterheads and both should have the same person's signature and both should have the words "Invoice" or "Receipt"  printed in bold at the center and both should have a number.  Typical formats are:

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(on Letterhead)

INVOICE

Date:
Invoice Number:

To: Dr. Bellare, I.I.T. Bombay

Item number: 1
Quantity:
Description:
Rate:
Amount:

Item number: 2
Quantity:
Description:
Rate:
Amount:

etc.

Total:
Discount:
Tax, if applicable:
Grand total:
Advance paid:
Total due: Rs. xxx (in numbers)
Total due: Rupees xxx (in words)

Signature
Rubber stamp.

Other information as applicable of seller:
BST number: xxx
CST number: xxx
CEX number: xxx
SSI number: xxx
MMC number: xxx
 
 

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(on Letterhead)

RECEIPT

Date:
Receipt Number:

Received with thanks from Dr. Bellare the sum of Rs. xxx (numerals) Rupees
xxx (words) in cash/cheque with number: xxx, dated xxx, bank xxx, brach
xxx, towards full/part payment of our Invoice number xxx dated xxx.

Cheque subject to reailzation.

Rs. xxx (in numbers)

Signature on revenue stamp of Rs. 1 (or whatever is currently applicable).
Rubber stamp.

Other information as applicable of seller:
BST number: xxx
CST number: xxx
CEX number: xxx
SSI number: xxx
MMC number: xxx

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It is not expected or rdesirable that you spend your own money for buying things for research.  Get prior sanction for spending, and if possible, get the money before spending it (i.e., do not spend you own money or do not buy on credit).  Once you have a better understanding of how the system works, you can buy small urgent items on credit with the standard vendors.  Be aware of rate contracts, bulk pricing, educational discounts, reference installations, demo pieces, etc; all can be used by you to lower prices with most vendors.

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When comparing prices, or when asking for quotations, be sure to ask the party if any of the following are applicable, and to include them as separate line items in their quotation / invoice: VAT, sales tax, Octroi, Excise, Customs duty, CVED, Surcharge, Cess, Clearance charges, Bank charges, Discounts, Special discounts, Educational discounts, Cash discounts, Forwarding charges, Packaging charges, Handling charges, installation charges, Comission, Agency commissions.
 

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