It is necessary to mention the bank account details or other such details determining where the payment is to be transferred to. This will be the sum total of the hours/assignments billed multiplied by the rate per unit, along with the GST charged, if applicable. In such a case, he needs to print the words ‘Composition taxable person’ at the top of the bill of supply that he issues. Please note that if the freelancer is registered under the Composition scheme, he will not be eligible to issue a tax invoice as there is no tax component. A bifurcation should be given between taxes as IGST, CGST and SGST due to the Central and state governments. If all the services fall under the same tax bracket and service code, then just the applicable rate can be mentioned at the end and calculated on the gross value of services rendered, along with the amount of tax. If the freelancer has a GST registration and is liable to pay tax on the services provided, then the tax rate and amount of tax due against each service should be separately mentioned. The idea is to be specific here so that clients know exactly what they’re paying for. If the freelancer is a graphic designer, it can be the list of creative projects undertaken along with the exact work done or the number of hours put in and the rate per project or per hour worked. If the freelancer is a writer, it can be the list of topics written along with the word count and rate per word. Next comes the list of services rendered by the freelancer. List of services with the rate charged (before tax).For example, an invoice raised in May 2021 can have an invoice number like 123. A helpful tip here is to include the year and month in which the invoice is raised while numbering invoices. The invoice number is the serial number of that invoice and plays an important role in referencing that invoice, either by the freelancer or the recipient of his services. For example, ‘Payment to be made within 30 days post invoice date’. This is important to mention as sometimes the payment terms in the freelancer contract, if available, is based on the invoice date. The invoice date is the date the invoice is raised on. Similar to the freelancer’s name and contact details, the client’s name and relevant information such as his address, contact number and email address, GSTIN, etc., needs to be mentioned too. If the freelancer has a tax identification number like a GSTIN, the same should be mentioned here. The contact details, such as the telephone number, email address, postal address, etc., should appear below the freelancer’s name/company name so that the recipient can contact the freelancer in case of any discrepancies. This way, anyone reading the invoice will know who raised it at first glance. The name of the freelancer or his company, and the logo, if available, should appear on the top of the invoice. The following details should definitely be included in a freelancer’s invoice:Įvery invoice should be appropriately titled with the words ‘Invoice’ or ‘Tax Invoice’ or any such similar title, as applicable. What are the contents of an invoice raised by a freelancer? It also helps eliminate any confusion or misunderstanding between the freelancer and the client. For a freelancer, raising invoices is an important business process as it not just determines the amount to be paid but also ensures that the payments are received on time. A freelancer is an individual who does not work for a particular company as an employee but picks up multiple assignments for various different companies or individuals.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |