Lokesh M

 Profile Answers by Lokesh M Questions by Lokesh M

• Feb 7th, 2012

 

Whenever sales transaction does not involve any tax component, then retail invoice is issued. Such type of invoice is also known as cash memo. No VAT credit can be claimed on retail invoices.

Whenever sales transaction involves tax component, then tax invoice (VAT Invoice) is issued. Tax Invoice can be issued by only registered dealers as per the guidelines only. In this type invoice the tax amount is distinctly mentioned and only such tax invoices are eligible for claiming VAT credit.

AJAY

• Feb 10th, 2012

 

Retail invoice is a normal invoice given to a customer at the time of sales, it is not concerned with tax-credit. Whereas tax invoice is a mandatory invoice precribed by the tax authorities containing specified information. It helps in forming a chain where credit is allowed of input tax paid at the time of purchases.