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Retail Invoice V/s Tax Invoice

GANESH PUNEKAR (Finance Officer) (62 Points)

11 June 2008

What is The difference between

Retail Invoice V/S Tax Invoice

Thanks & Regards

Ganesh

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16 Replies

(Guest)

Tax invoice is issued to purchaser who has TIN and retail invoice is issued to Other thatn TIN holder it is similar to Cash invoice

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subramanya (Professional) (907 Points)
Replied 12 June 2008

Dear Ganesh,

The Definitions for Tax invoice and Retail Invoice differ from State to State. However, Please find the below given Guidelines of Tax Invoice and Retail Invoice(of Punjab VAT).

Guidelines for introduction of VAT Invoice

1. VAT Invoice is the most important document under VAT system.

2. VAT Invoice establishes the tax liability of the seller and is the evidence for deduction of input tax credit by the purchaser.

3. VAT Invoice is to be issued only by selling taxable person to the purchasing taxable person.

4. Section 45 of Punjab VAT Act, 2005 read with rule 54 & 55 of Punjab VAT Rules prescribes the particulars required to be filled in VAT Invoice and Retail Invoice. VAT Invoice shall contain the following information :-

(a) Name, address & VAT registration number of the seller

(b) Date of issue of the Invoice

(c) Mechanically printed Serial No. of the Invoice

(d) Quantity and descripttion of the goods sold

(e) Unit price and the amount charged (excluding VAT)

(f) Amount of VAT charged

(g) Name, address & VAT registration number of the purchaser

(h) Serial Number of the Form VAT-XXXVI (applicable in inter-state transaction) (not operative at present)

(i) Serial Number of Form VAT-XXXVI in case of sale/transfer of goods out side the State. (not operative at present)

(j) GR.No. and name of the Transport Co., where applicable

(k) Signature of authorized person

5. VAT Invoice should be prepared in triplicate i.e. original, 2nd copy and the 3rd copy.

6. The original invoice is to be issued to the purchases and the 2nd copy of the VAT Invoice is meant for transport & 3rd copy to be retained by the seller.

7. Purchaser taxable person shall claim input tax credit on the basis of original copy only. The original copy shall carry the note Input Tax Credit is available to a taxable person against this copy.

8. First copy shall be made available by the purchaser to the department, as and when required, for the purpose of cross-verification of sales reported by sellers and purchases reported by purchasers.

9. 2nd and 3rd copy must be marked as this copy does not entitle the holder to a tax credit. The 2nd copy shall carry the note This copy does not entitle the holder to claim Input Tax Credit

10. Colour of copies of VAT Invoice should be made different from that of the original for easy identification.

11. Those opting for registration as TOT dealers shall issue Retail Invoice which shall also be in duplicate.

12. The Retail Invoice shall carry all the details prescribed for VAT Invoice in clause a, b, c, d, j and k at point 4.

With regards,

Subramanya

GANESH PUNEKAR (Finance Officer) (62 Points)
Replied 14 June 2008

Dear sir,

Thank you for your valuable information.

one another query is as per Maharashtra Vat above guidelines same.

wirh regards

subramanya (Professional) (907 Points)
Replied 17 June 2008

Maharastra VAT Act

86. Tax invoice and memorandum of sales or purchases –

(1) If a registered dealer sells any goods, he may issue to the purchaser a tax invoice containing such particulars as are specified in sub-section (2) and retain a copy thereof for three years from the end of the year in which the sale took place.

(2) The tax invoice issued under sub-section (1) shall contain the following particulars on the original as well as on all the copies thereof,—

(a) the words “tax invoice” in bold letters at the top or at any prominent place,

(b) the name, address and registration certificate number of the selling dealer as well as the name and the address of the purchasing dealer,

(d) descripttion of the goods, the quantity or as the case may be, number and price of the goods sold and the amount of tax charged thereon indicated separately, and

(e) signed by the selling dealer, or his servant, manager or agent duly authorised by him.

(3) When a registered dealer sells any goods, he may at his option issue to the purchaser a bill or cash memorandum serially numbered , signed and dated by him or his servant, agent or manager and stating therein such other particulars as may be prescribed. He shall keep a counterfoil or duplicate of such bill or cash memorandum duly signed and dated and preserve it for a period of three years from the end of the year in which the sale took place. Where the said registered dealer is issuing a bill or cash memorandum, he shall not collect tax separately on such sale.

( In above section 86 for sub-section (3) following sub-section (3) is substituted by the Maharashtra Act No. XXV of 2007 Dt. 06.08.2007)

(3) When a dealer liable to pay tax under this Act, sells any goods to any person, he shall issue to the purchaser either a tax invoice or a bill or cash memorandum serially numbered, signed and dated by him or his servant, manager or agent and showing therein such other particulars as may be prescribed. He shall keep a counterfoil or duplicate of such bill or cash memorandum duly signed and dated, and preserve it for a period of three years from the end of the year in which the sale took place:

Provided that, where the value of the goods sold in a single transaction is rupees fifty or less, then it shall not be necessary to issue the said bill or cash memorandum.

(4) Nothing contained in sub-section (1) or (2) shall apply to a dealer who is paying tax by way of composition under sub-section (1) or (2) of section 42.

(5) The State Government may, by rules provide for such electronic system as may be used, if necessary. in conjunction with such automatic data processing machines, as may be prescribed, for preservation of the details of the bill or cash memorandum for the purposes of sub-section (3) in such form and manner as may be approved by the Commissioner arid any dealer may apply to the Commissioner to permit him, subject to such conditions, if any, as may be prescribed, to maintain the record of the bills or cash memoranda on such system. On such permission being granted, the dealer shall stand exempted for the purposes of said sub-section (3) regarding keeping counterfoils or duplicates of the said bills or cash memoranda and of signing the bill or cash memorandum.

(For the above subsection (5) the following subsection (5) is substituted w.e.f. 01.04.2005 by the Maharashtra Act No. XXXII of 2006 Dt. 05.08.2006)

(5) Any dealer may apply to the Commissioner to permit him to maintain the records of the bills or cash memorandum on such electronic system as may be approved by the Commissioner. On such permission being granted, the dealer shall stand exempted for the purposes of sub-section (3) regarding keeping counterfoils or duplicates of the said bills or cash memoranda and of signing the bill or cash memorandum.

(4) A registered dealer, shall in respect of every sale made by him issue either a tax invoice or a bill or cash memorandum as provided under sub-section (1) or (3).

As per Maharastra VAT Rule

77. Particulars to be specified in a tax invoice, bill or cash memorandum-

(1) Every dealer who is required by sub-section (1) of section 86 to issue a tax invoice in respect of goods sold by him shall, in addition to the particulars specified in the said section, cause a certificate as below to be printed on the invoice and signed by himself or by a person duly authorised by him.

"I/We hereby certify that my/our registration certificate under the Maharashtra Value Added Tax Act, 2002 is in force on the date on which the sale of the goods specified in this tax invoice is 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 turnover of sales while filing of return and the due tax, if any, payable on the sale has been paid or shall be paid"

(2) Every dealer who is exempted from the payment of tax by virtue of an Entitlement Certificate granted to him by the Commissioner, shall, when issuing an invoice in respect of any goods covered by his Certificate of Entitlement, comply with the requirements of sub-rule (1) but in place of the certificate provided therein the invoice shall contain a declaration as follows, namely:-

"I/We hereby declare that sale of goods evidenced by this invoice is exempt from the whole of sales tax in my/our hands on account of the Certificate of Entitlement bearing No. __________________ duly granted to me/us and as such my/our immediate purchaser shall not be entitled to claim any set-off in respect of this transaction under any provision of Maharashtra Value Added Tax Act, 2002 or the rules framed thereunder and that the transaction shall be accounted for in the turnover of sales while filing my/our return.”

(2A) Where the tax invoice or as the case may be, bill or cash memorandum is issued in respect of resale of goods which are manufactured by a dealer, whose sales are exempted from payment of tax under entry (1) or entry (2) of the Schedule appended to the Government Order, Finance Department, No. VAT-1505/CR-122/Taxation - 1, dated 1^st April 2005, the said tax invoice or as the case may be, bill or cash memorandum shall, in addition to the certificate referred to in sub-rule (1) or, as the case may be, sub-rule (3), contain a declaration as follows, namely:-

"I/We hereby declare that the first sale of the goods sold under this tax invoice / bill/ cash memorandum is exempted from whole of tax in the hands of the manufacturer under entry (1) or entry (2) of the Schedule appended to the Government Order, Finance Department No. VAT-1505/CR-122/Taxation - 1, dated 1^st April 2005 .

(The above sub-rule (2A) is inserted by Notification No. STR-1506/CR-38/Taxation-1 Dt.08.09.2006)

(3) Where a dealer liable to pay tax under this Act, sells any goods to any person other than a registered dealer, and is required to issue a bill or cash memorandum, he shall cause it to be serially numbered, signed and dated and the bill or cash memorandum should contain the details of the full name and style of his business, the address of his place of business, the number of his certificate of registration, the particulars of the goods sold and the sale price thereof and the bill or cash memorandum shall contain a certificate as follows:-

“I/We hereby certify that my/our registration certification under the Maharashtra Value Added Tax Act, 2002 is in force on the date on which sale of goods specified in this bill/cash memorandum is made by me/us and that the transaction of sale covered by this bill/cash memorandum has been effected by me and it shall be accounted for in the turnover of sales while filing my return.”

(Guest)

what is the rate of vat in punjab on woodcutter machine

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(Guest)

Sir,

Please tell me what is the Tax Invoice & Retail Invoice and what is the diffrence between them

Regards

Alok Verma

9899265071

sankar024 (Finance Professional) (35 Points)
Replied 06 October 2008

the tax invoice means , it is purely for manufacturing unit and retail invoice means u may buy the materials frm one and sell to another and enjoy the input tax. where as in tax invoice u cant bcz u buy the raw materials and convert to the finished goods and sell.

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 11 October 2008

Tax Invoice can be issued by only registered dealers as per the guidelines only. ITC can be taken by purchaser only against tax invoices. Tax invoices are issued in cases where purchaser wants to get the benefit of ITC.

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 11 October 2008

Retail invoices are issued to other sales (includiong inter state sales).

steve (Retail manager) (22 Points)
Replied 20 June 2009

Thanks for the detail information on both the topics, I have cleared now about the retail invoioce and Tax invoice, thanks for giving this information rightly, i really need it now. We are best retail consultants around the globe offers best solutions for the strategic management and retail operations.

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Ca ratish (guiding) (102 Points)
Replied 04 May 2010

Tax Invoice:

When a company sells a product to distributor or any person
in the supply chain but not the end user then Tax invoice is
generated because it is going to be resold. To issue a Tax
Invoice the person who purchases a product must have TIN
(Tax Identification Number).

Retail Invoice:

When an end user of the product is purchasing then consumer
receives the retail invoice.

Main and straight difference between Tax Invoice and Retail
Invoice is Tax invoice is entitled to Input Tax Credit in
(VAT) whereas Retail Invoice is not because product is not
going to be resold by consumer.


thanx...........

john (LEARNER) (549 Points)
Replied 08 May 2010

In mumbai at manish market/ crawford market/ sahara market and many more in the adjacent areas

almost 90% of the shop keepers both purchases & sales in cash. the supplier there are all(90%) cash dealers-unregistered dealers.

in such a situation if one wants to maintain his accounts & pay tax (income tax is OK we can proceed) but MVAT?

(if he ask bill from the supplier they say plz approach some one els, & if he will sell along with tax customer will leave him saying there r many other shops)- from both side if he goes for the RIGHT, he suffer nothing but loss and end up just paying HUGE RENTS.

Q. IN SUCH A CASE HOW SHOULD ONE MAINTAIN PURCH / SALE IF HIS TURN OVER EXCEEDS RS. 5,00,000/-