Building BusinessServices

Section 44

Purchase order

Use it to place a written order with a supplier after you accept their quotation.

Your details

Your document

Template for general guidance; not legal advice. Check stamp duty and registration rules in your state. PURCHASE ORDER Buyer: Your business name Your business address GSTIN: Your GSTIN (if registered) PO No.: PO number PO date: PO date To (Supplier): Supplier name Supplier address GSTIN: Supplier GSTIN Reference: Your quotation Supplier's quotation number and date Please supply the following: Item: Item and specification HSN / SAC: HSN / SAC code Quantity: Quantity and unit Price per unit: ₹Price per unit (₹) GST: GST rate (%)% Total order value (including GST): ₹Total order value including GST (₹) Terms and conditions: 1. Delivery: Deliver to Deliver to by Deliver by. 2. Documents: Send a tax invoice showing this PO number, with a delivery challan and, where needed, an e-way bill. 3. Quality: Goods must match the specification above and your quotation. Inspection and rejection. 4. Late delivery: If delivery is not made by the date above, If delivery is late. 5. Payment: Payment terms. 6. Price: Prices are fixed for this order. No extra charge will be accepted unless we agree to it in writing. 7. Acceptance: Please confirm acceptance of this order in writing within 2 working days. For Your business name ______________________ Your name and designation

Know before you sign

  • A purchase order is your acceptance of the supplier's offer. Once the supplier accepts it, it becomes a contract under the Indian Contract Act, 1872 and, for goods, a contract of sale governed by the Sale of Goods Act, 1930.
  • Quote the supplier's quotation number so both sides refer to the same price and specification.
  • Ask the supplier to put your PO number on the tax invoice. It makes matching bills and claiming input tax credit easier.
  • Write clear inspection and late-delivery terms. If the PO is silent, the Sale of Goods Act's general rules apply, which may not suit you.
  • Keep the supplier's written acceptance (email is fine) with the PO.
Sources (2)
  1. The Indian Contract Act, 1872 (Act No. 9 of 1872): sections 10 and 27 · 1872
  2. The Sale of Goods Act, 1930 (Act No. 3 of 1930) · 1930

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