Here is a customised template of Invoice specifically for the Aviation Industry. Note that in India, the invoice needs to match the requirements of the Indian Customs. This part critical as any ambiguity on invoices creates issues during import/exports and audits. Here are some quick points to remember before creating your invoices.
For Import
In Aviation, generally lot of OEMs/Aircraft Manufacturers offers spares on standard exchange or lease basis rather than straight sale of goods. According to India customs valuation rule, even if there is no money paid for the spares, the customs duty is applicable on the assessable value (value of + freight + insurance) of the spares. For re-import of goods the invoice should show the costs of repairs and value should match the value of goods at time of first import.
Import Invoices should include
- Item Name, Description, Quantity, Part Number and Serial Number
- HSN Code
- Country of Origin
- Value without discounts ( cannot have S$0 invoices )
- Seller and Buyer (Name, Address, Contact Person)
- INCO Terms
- Purchase Basis (Exchange, Leased, Sale, etc)
- Preferable Spares Use (Is it Part of Avionics, Undercarriage, Engine Parts etc)
- Preferable - Materials used in manufacture of Spares (Is steel used, Plastic used in the parts etc)
Export
Generally in aviation shipments are exported either because they are faulty/failed in operation, or return after lease. Invoices for export should mention clearly the reason for export
Export Invoices should include
- Item Name, Description, Quantity, Part Number and Serial Number
- HSN Code
- Country of Origin
- Seller and Buyer (Name, Address, Contact Person)
- Reason for export (Core Return, Lease Return or Sale)
- Value should match the value during import
- If Value is above USD$25000, then GR waiver from RBI/authorised dealer bank is essential
- Mention of Letter of Undertaking as there is no GST collected in export transaction
- Is item going to be re-imported
Domestic: Invoices should include
- Item Name, Description, Quantity, Part Number and Serial Number
- HSN Code
- Country of Origin
- Seller and Buyer (Name, Address, Contact Person)
- Purpose for shipment
- Value of the goods should be mentioned clearly
- eWayBill is required along with Invoice
For any queries feel free to reach out on abhi@abhishekjdate-logistics.in. Download the template from here.
