Scroll Top

search-icon
    drop-arrow

    Receipt

    Introduction

    A receipt refers to a written record or acknowledgement of paying a sum of money in return for goods or services. Receipts are provided by sellers of goods or service providers against the payment made by the customer. Not just business to consumer dealings (B2C), receipts have to be provided in business to business dealings (B2B) as well.

    Understanding Receipt

    A receipt serves as documentary evidence for the purchase of goods which may be consumables, personal use goods, electronics, and so on. Similarly, in the service industry, receipt acts as evidence for the use of a service, such as a lawyer’s service, consultation, and medical prescription from a doctor or hospital. In the case of any need to exchange goods or resolve any concerns with the service provider, the receipt acts as evidence for the consumer.

    In the case of business to business transactions, the receipts for purchases of raw materials or trading goods will constitute business purchases. The receipts act as evidence of purchases and claim for business expenses and filing of monthly and yearly tax returns. The receipts also help in tracking payments to vendors and accounting for the transactions.

    Similarly, in the process of banking, a customer having a bank account will obtain a receipt for cash and cheque deposits and withdrawals. A holder of a bank account can also download receipts for electronic transactions, such as transfer of money, payment by credit card or debit cards.

    A person making investments will also obtain deposit receipts in the case of fixed deposits made in a bank, a receipt for PPF deposits, mutual funds investments, stock market transactions and so on. These receipts will act as evidence of the investments and enable entry into the records of the investor.

    Conclusion

    Generating and providing receipts to customers is mandated under the business laws of the land. The law also advises that you retain the receipts for a specified period for the purpose of audit or assessments. In India, the Goods and Service Tax Law and Income Tax Act, 1961 mandate the maintenance of records of receipts.

    Popular Topics

    Latest Articles

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use

    ISO

    ISO 27001

    Data Center

    SSL

    SSL Certified Site

    128-bit encryption