We placed a purchase order on a Chinese supplier. Due to non-availability of containers and vessels, they are unable to ship as per the agreed dispatch schedule. They have asked us to buy the items locally and agreed to compensate us for the differential purchase price (which is akin to the risk purchase clause). Please guide how to issue a service invoice mentioning “Heading — Damages claimed for non-supply of goods as per Risk Purchase Clause”. What about HSN and taxability or other issues,if any?
The payment from the Chinese supplier is a consideration for your tolerating his act
The payment from the Chinese supplier is a consideration for your tolerating his act