Signature on bill/invoice with service tax
Mahendra Mhatre
(Querist) 24 September 2013
This query is : Resolved
Currently we have implemented ERP package for billing to our clients. Since the details of services offered are captured through ERP defined workflow using common platform across the operating & accounting team, the invoice/bills printed through this software are not signed. We put the remark ‘This is a computer generated Invoice, signature not required’
One of our client has objected this by mentioning Rule 4A of Service Tax and insists that we should sign the Invoice.
Please clarify who is right? As most of the companies in service industry are having this practice.
C. P. CHUGH
(Expert) 07 November 2013
Your client is right in asking for physically signed tax invoice. A computer generated documents, not requiring signatures, as per information technology act, can be issued only under any authority of law where such documents are subjected to control and are not editable without the permission/authority of designated officers like down loaded bank statements etc. An invoice prepared merely using a software (ERP or any other) which is prone to alteration can not be treated as a genuine tax invoice eligible for input tax credit.
