What is the difference between retails invoice & tax invoice.
Ashish Karn
(Querist) 08 September 2014
This query is : Resolved
What is the difference between retails invoice & tax invoice.
ajay sethi
(Expert) 08 September 2014
academic query
Anirudh
(Expert) 08 September 2014
Dear Mr. Ashish Karn,
Please note that under the Value Added Tax Acts of various States, generally persons purchasing, selling supplying or distributing goods are called "Dealers".
The goods may be taxable goods or non-taxable goods.
The Dealers are required to be registered under certain conditions.
Thus when the Dealers who deal in taxable goods, and sell to another Dealer either for resale or to a manufacturer for manufacturing further products, he is required to issue an invoice called "TAX INVOICE". In the said invoice, the amount of VAT charged would be shown separately.
Only on the basis of such TAX INVOICE, the other dealer who purchases the goods for re-sale, or the manufacturer who purchases the goods to be used as raw material for manufacture of other goods, can take CREDIT of the TAX paid by them.
However, the retail shop owner can not issue such TAX INVOICE. This is mainly because, the retailer is selling the goods to customers who purchase the goods for their own consumption and not for reselling or for manufacturing. Those invoices are called retail invoice.
R K JAIN
(Expert) 10 September 2014
Retail invoice is issued to consumer and tax invoice is issued to dealer for the purpose of availing the input tax at the time of sale of that good or goods manufactured from these goods.
