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What is a Tax Invoice ?

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A tax invoice is an invoice issued by a registered dealer to another dealer which shows tax payable or paid to the government. The dealer who receives the tax invoice may a registered dealer or unregistered dealer. It is a legal document.

You must possess a purchase tax invoice if you want to claim Input tax credit at the time of submitting return to the commercial tax department.

Every state has its on commercial tax departments and its own rules for preparing Tax invoices.Following are the essentials of a tax invoices a generalized one after considering various states rules.

  1. The Title of the Invoice Should be ‘Tax Invoice
  2. Invoice Number  & date
  3. Purchase Order Number & Date
  4. Name,address, VAT & CST number of selling dealer.
  5. Name,address, VAT & CST number of the purchaser if he is a registered dealer.
  6. HSN Code
  7. Central Excise Registration Number in case of a manufacturer.
  8. And in details column Sr, No. Description of goods,Quantity, Rate per unit & Total amount
  9. Discount allowed should be shown separately in Tax Invoice.
  10. Total Tax collected from customer
  11. Total sale amount.
  12. A declaration certificate

Any Specific Format for Tax Invoice?

This is also depends on the state you are dealing with. Some state tax department has specific format like Form 8 for Kerala.But Maharashtra state allows to create a your own Tax invoice with the mandatory details provided by the department.

Whom to issue tax Invoice?

  • A Tax Invoice should be Issued to a registered dealer
  • A tax Invoice can be Issued to an Unregistered Dealer

 Note: some states like Maharashtra recommend to issue retail invoice to unregistered dealer an exception to this is Kerala state allows only Tax Invoices to unregistered dealer)

How many copy of Tax Invoice  is prepared?

Four ( 4) copies of tax invoice should be prepared.Original ,Duplicate ,Triplicate,Quadruplicate. The original to be issued to the buyer for the Input tax credit purpose. Duplicate for transporter copy.Triplicate For filing at check post and quadruplicate should be retained and filed with the seller.

Who should sign on Tax Invoice?

Tax Invoice should be signed by person who is approved as an authorized person by the commercial tax department. The companies ,firms can submit application for authorizing any person including staff to submit returns, to appear before the authorities for various purposes and sign on various documents producing before department including Invoices.

What Does a declaration certificate contain?

Here is a sample declaration certificate

“I/We hereby certify that my/our registration certificate under the Maharashtra Value Added tax 2002 is in force on the date on which the sale of goods specified in this tax Invoice made by me/us and that the transaction of sale covered by this tax invoice has been effected by me/us and it shall be accounted for in the turn over of sales while filing of return and the due tax/ if any,payable on the sale has been paid or shall be paid”.

Final note

I will be updating statewide Tax invoice details soon as possible as  by writing this article understood that Tax Invoice cannot be generalized and it is state specific.

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