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:
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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