Proforma Invoice Letter for India

Proforma Invoice Letter Template for India

A Proforma Invoice Letter is a preliminary commercial document issued by a seller to a buyer before the actual sale takes place. Under Indian law, particularly governed by the Central Goods and Services Tax Act 2017 and the Indian Contract Act 1872, this document serves as a commitment to sell goods or services at specified prices and terms. It includes detailed information about the products or services, pricing including applicable GST, delivery terms, and payment conditions. While not a final invoice, it holds significant legal and commercial importance in Indian business transactions, especially in international trade where it may be required for customs clearance and foreign exchange procedures.

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What is a Proforma Invoice Letter?

The Proforma Invoice Letter is a fundamental commercial document widely used in Indian business transactions to initiate and formalize potential sales. It serves as a preliminary bill of sale, providing buyers with detailed information about products/services, prices, taxes, and terms before the actual transaction occurs. This document is particularly crucial in situations requiring advance payments, customs clearance for international shipments, or when buyers need to obtain internal purchase approvals. Under Indian law, while not a final invoice, it must comply with various regulations including the GST Act, making it a legally significant document. The Proforma Invoice Letter is commonly used for both domestic and international trade, helping businesses maintain clear communication about commercial terms and facilitate smooth transaction processes.

What sections should be included in a Proforma Invoice Letter?

1. Letter Header: Company letterhead, date, reference number, and document title 'Proforma Invoice'

2. Buyer Details: Complete name and address of the buyer, including GST registration number if applicable

3. Seller Details: Complete company information including GST registration number, contact details, and bank information

4. Product/Service Details: Detailed description of goods/services, quantities, unit prices, and HSN/SAC codes

5. Price Summary: Subtotal, applicable taxes (GST breakdown), and total amount in both figures and words

6. Payment Terms: Payment method, due date, and any advance payment requirements

7. Delivery Terms: Shipping method, delivery timeline, and delivery address

8. Validity: Period for which the proforma invoice remains valid

9. Authorization: Signature, name, and designation of authorized signatory

What sections are optional to include in a Proforma Invoice Letter?

1. Export Details: For international trades: Include IEC number, port details, shipping terms (Incoterms), and export documentation requirements

2. Special Handling Instructions: For sensitive or specialized products requiring specific handling or storage conditions

3. Warranty Information: When offering specific warranty terms or conditions for the products

4. Certification References: When products require specific quality certifications or compliance certificates

5. Terms and Conditions: When additional terms need to be specified beyond standard payment and delivery terms

What schedules should be included in a Proforma Invoice Letter?

1. Detailed Product Specifications: Technical specifications, dimensions, materials, and other detailed product information when the main invoice body requires supplementary details

2. Price Breakdown Schedule: Detailed breakdown of costs including unit prices, discounts, taxes for multiple items or complex pricing structures

3. Shipping Documentation: Required for international shipments, including packing lists and shipping marks

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Invoice Form

Sector

Sales

Cost

Free to use
Relevant Industries

Manufacturing

Retail

Wholesale Trade

Information Technology

Construction

Healthcare

Automotive

Electronics

Textiles

Food and Beverage

Agriculture

Professional Services

Export-Import

E-commerce

Relevant Teams

Finance

Accounts

Sales

Procurement

Export

Import

Commercial

Tax

Supply Chain

Operations

Business Development

Legal

Shipping

Customer Service

Relevant Roles

Finance Manager

Accounts Executive

Sales Manager

Procurement Officer

Export Manager

Import Coordinator

Business Development Manager

Commercial Director

Shipping Coordinator

Tax Compliance Officer

Chief Financial Officer

Accounts Receivable Specialist

Supply Chain Manager

Managing Director

Operations Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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