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Tax Invoice

Tahseen Tabassum (CA-FINAL) (644 Points)

16 April 2009

I want to know if a Company make a sale and charge CST against C Form, is there any condition that they cannot raise a Tax Invoice or in other words they cannot raise Tax Invoice. Please anyone make it clear.

Thanks in Advance.

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9 Replies

CA Chetan Jain (Chartered Accountant) (47 Points)
Replied 21 April 2009

dear tahseen ji,

as far as in my knowledge, tax invoice is only given in case of vat and its not possible in case of central salex tax.

as in cst on retail invoice can be issued and no credit is availed in cst.

regards,

chetan

ca final year student.

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Tahseen Tabassum (CA-FINAL) (644 Points)
Replied 21 April 2009

Yes Chetan what you says i think is correct..... i just want to know if the company issued a tax invoice for cst against form c is it against any norms or is there anything that it cannot issue so ???? Please explain.

Anoop (Service) (345 Points)
Replied 22 April 2009

Tax invoice issues only in local sales to a registered dealer not in cst sales and purchaser takes input credit on tax invoice.

Tahseen Tabassum (CA-FINAL) (644 Points)
Replied 22 April 2009

Thank You All

CA Chetan Jain (Chartered Accountant) (47 Points)
Replied 23 April 2009

dear tahseen ji,

it is not posssible to issue tax invoice in central.and it is against norms.

only retail invoice can be issued and also forms can only be issued if dealer is registered.

and always remember tax invoice is only and only issued in case of delhi vat.

Regards,

chetan

ca final year student

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CA Chetan Jain (Chartered Accountant) (47 Points)
Replied 23 April 2009

and also tax invoice is issued if the dealer is registered...

regards,

chetan

ca final year student

Tahseen Tabassum (CA-FINAL) (644 Points)
Replied 23 April 2009

Thank You Chetan

R B Banwat (tax consultant) (154 Points)
Replied 29 April 2009

1. There is no prescribed format for Invoice to be raised under CST Act.

2. Tax Invoice is the name used under Local VAT Act, and let me remind you, there is no prescribed form for it also. Rules states what it must inlcude e.g. VAT TIN No, declaration, "TAX Invoice" used promintely in the invoice etc.

3. This is for one simple reason, so that when Inoput tax credit is claimed they are backed by TAX Invoice and which can be easily identified and segrated from tones of Invoices.

4. When you issue Invoice for CST Sales, you must remember that NO CREDIT is avaliable to your purchaser for CST paid on it. Now it happnes many times, that as word TAX Invoice is printed on the bill, it is recorded as Local purchase by the data entry person and credit of input taxes is claimed. Then when it is found afterwards, one is require to pay back the amount along with interest.

5. so as normal business practice, its advisable to issue interstate Sales bills not as Tax Inovice Biils

Thats all