Asked by: Synnove Caneleirobusiness and finance debt factoring and invoice discounting
Are invoices legally required?
Also know, is an invoice required by law?
It is the legal obligation of the seller toinvoice the customer once the product is sold or theservices are provided. There is no prescribed statutorytemplate for an invoice, although there areprescribed standards to which you must adhere in order tomake your invoice legally binding.
Similarly one may ask, why is an invoice needed?
Record Keeping The most basic purpose for a sales invoice is tokeep a record of the sale. It provides a way to track the date agood was sold, how much money was paid and any outstanding debt.The invoice is an invaluable tool for accounting. It canalso track which employees make sales and the items theysell.
Yes, signature is mandatory for invoicesunder GST. Signature may be in either of the following ways:By hand, by the authorised person or. By way of affixing hisdigital signature (as approved / issued under theInformation Technology Act, 2000).