Send receipt. Receive credibility.

“Receipt” includes any note, memorandum or writing.

• Any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received.
• whereby any other movable property is acknowledged to have been received in satisfaction of a debt.
• whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
• Signifies or imports any such acknowledgment,

               and whether the same is or is not signed with the name of any person.

The term receipt

is defined in section 2 clause 23 of the Indian Stamp Act, 1899. Any person receiving any money exceeding Rs. 20/- Any bill of exchange, cheque or promissory note for an amounts exceeding Rs. 20/-  Receiving in satisfaction or part satisfaction of a debt any movable property exceeding Rs. 20/- in value, shall, on demand by the person, paying or delivering such money, bill, cheque, note of property, give a dully stamped received for the same.

Legal receipts

Generally, it is the receipt or acknowledgement which is the bone of contention for any financial disputes. Giving or receiving receipts or acknowledgement for any kind of transactions makes you legally safe. It also curves the litigation as the probability and possibility of the dispute is reduced to minimum.

Indian stamp Act

Indian stamp Act provides the list of instruments which must bear the stamp of appropriate value. The penalties have also been contemplated under law if the due procedure is not fulfilled.

Registration of receipts is not compulsory, but if a receipt by itself creates an interest in immovable property of the value of Rs. 100/- and upwards, its registration will be compulsory.

It serve as a document for customer payments and as a record of sale. If you want to provide a customer with a receipt, you can handwrite one on a piece of paper or create one digitally using a template or software system. If you plan on doing business, it’s important that you know how to properly write a receipt for proper documentation, tax purposes. To protect yourself and your customers.

It is advisable for a business to issue some form of receipt to all customers. This is supplied whenever a customer pays for goods or services offered by a business. A receipt could be simply signing and dating an invoice to show that it has been paid.

A receipt is also important documentation for maintaining your business records and preparing your tax returns, so it is vital you keep copies of these filed away safely.

If you sell a product or service the receipt you provide to your customer should contain the following:

• • your company’s details including name, address, phone number and/or email address
  • Date of transaction showing date, month and year
  • a list of products or services showing a brief description of the product and quantity sold
  • the amount of the transaction with the total amount broken down down to show the net amount, VAT (if VAT has been added) and any discounts
  • method of payment – ie cash, credit or debit card etc.

There are various ways a receipt can be issued. A receipt can be issued on paper or electronically. It can be handwritten or typed.

Electronically

Many small cash register contain built-in printers for producing receipts. They also have software that allows you to programme tax rates and codes straight into the register, so all the calculations are done automatically.

Also, digital receipts are an option – this method of supplying a receipt is becoming increasing more popular. Once produced, the receipt is emailed straight to the customer. This website offers a range of templates for customising.

Paper

If you don’t have software to produce a digital receipt, then a handwritten receipt will work just as well. A receipt book can be purchased easily from a stationers and usually offers two copies per receipt (one for the customer, the other for your records). Alternatively, there are plenty of receipt templates available online. And  that you can download to use. You can create your own template from scratch, in Microsoft Word for example.

To keep records of all receipts for the same length of time as other business documents are retained (which is a minimum of six years).

Obligation to give receipt in certain cases

Any person receiving any money, exceeding twenty rupees in amount, or any bill of exchange, cheque or promissory note for an amount exceeding twenty rupees. Receiving in satisfaction or part satisfaction of a debt any movable property exceeding twenty rupees in value, shall, on demand by the person paying or delivering such money, bill, cheque, note or property, give a duly stamped receipt for the same.

Receiving or taking credit

[Any person receiving or taking credit for any premium or consideration for any renewal of any contract of fire-insurance, shall, within one month after receiving or taking credit for such premium or consideration, give a duly stamped receipt for the same.]

• An Invoice is a request for payment and receipt is a confirmation of payment.
• The significant difference between the two is that the invoice is issued prior to the payment while the receipt is issued after the payment.
• Invoice is used to track the sale of goods or services. On the contrary, receipt acts as documentation for the buyer that the amount of the merchandise has been paid.
• The invoice indicates the total amount due whereas the receipt indicates the total sum paid along with the mode of payment.

This is an acknowledgement issued by the vendor to the purchaser of goods or services to request for the payment of goods sold or services rendered by him. It is a non-negotiable legal document which identifies the buyer and seller of the stuff. It contains details regarding quantity, price, discount, taxes, the total amount due for the payment, invoice number, date of issue of invoice and the seller’s signature. The instrument is delivered prior to the payment of the goods for indicating the amount due against the merchandise.

means a commercial legal instrument used for stating that some goods or services of value have been received. It is issued by the vendor to the purchaser to act as proof that payment has been made. The receipt is issued after the payment of the stuff. The document contains details of buyer and commodity like quantity, price, taxes, discounts, mode and date of payment, the total amount paid, receipt number and signature of the seller or his authorised agent.