54. Tax invoice, retail/sale invoice. Sections 28(2) and 30(2).

 (1) A tax invoice shall be issued by a VAT dealer when making sale of goods in the State to another VAT dealer for resale thereof or for use in manufacture or processing of goods for sale. A retail sale invoice shall be issued by a VAT dealer, a casual trader, or a lump sum dealer, when making sale of goods in the State to a consumer or to an unregistered dealer. A sale invoice shall be issued for sale of goods in all other circumstances. A delivery note shall be issued for effecting delivery of goods whether as a result of sale, dispatch on consignment, or for any other reason but when an invoice issued for sale of goods accompanies the movement of goods, it shall not be compulsory to issue a delivery note. A consolidated sale invoice referred to in the proviso to sub-section (2) of section 28 shall contain reference of all the delivery notes showing delivery of the invoiced goods.

(2) A retail sale invoice shall be at least in duplicate. The original shall be given to the purchaser and the duplicate – a carbon copy of the original – shall be kept in record. A tax invoice, sale invoice or delivery note shall at least be in triplicate. The original shall be given to the purchaser, the duplicate to the transporter, and the triplicate shall be kept in record. Duplicate and triplicate shall be carbon copies of the original. Each invoice or a delivery note shall be machine numbered or shall bear a printed serial number in an ascending order. A dealer may make more copies of an invoice or delivery note than the minimum number prescribed above but each copy, whether prescribed or not, must clearly bear the pre-printed purpose, it is to be used for, like, “Original – Purchaser’s copy, “Duplicate – Transporter’s copy”, “Triplicate – Office Copy”.

(3) An invoice or a delivery note shall at least contain the following particulars –

Tax invoice/Retail invoice/Sale invoice/Delivery Note

Serial Number:                                                                                                                                                   Date: DD:MM:YY

                                                                                                                                                                        Time: HH:MM

Note: - Time is to be mentioned by stone crusher owners, quarry contractors/lessees in every case, and by other dealers in case the value of goods exceeds ten thousand rupees.

(i) Full name and address of the selling dealer/consignor with his TIN, if any

(ii) Nature of transaction - whether sale, consignment transfer or job work etc.

(iii) Name and address of the purchaser/ consignee (in case he is a dealer registered under the Act, mention his TIN)

(iv) Description of goods

(v) Quantity of goods

(vi) Value of goods with break-up according to rate of tax applicable (In case of delivery note, approx. value may be given and no break-up is necessary.)

(vii) Tax, where charged separately (Not compulsory when a delivery note is issued or an invoice is issued by a lump sum dealer, an unregistered dealer, or a VAT dealer making sale to a consumer.)

(viii) Vehicle number (Where the goods are carried in a vehicle.)

(ix) Name of the person carrying the goods (Where the goods are carried in a vehicle.)

Signature of the selling

dealer/consignor or his

authorised signatory.

Name in full and status

Note:¾ An illustrative arrangement of items (iv), (v), (vi) and (vii) in an invoice issued by a VAT dealer for sale of goods by him is given below:

In the above illustration, the selling VAT dealer shall debit Rs.840.23 to the account of the purchaser and credit Rs.15.00 to the ‘Exempted-goods account’, Rs.240.00 to ‘4%-goods account’, Rs.85.00 to ‘12.5%-goods account’, Rs.400.00 to ‘20%-goods account’, and Rs.100.23 to ‘VAT account’. On the other hand, if the purchaser is a VAT dealer, he shall credit Rs.840.23 to the account of the selling dealer and debit Rs.15.00 to the ‘Exempted-goods account’, Rs.240.00 to ‘4%-goods account’, Rs.85.00 to ‘12.5%-goods account’, Rs.400.00 to ‘20%-goods account’, and Rs.100.23 to ‘VAT account’.

In case of a retail sale, if the tax amount is not separately shown, it may take the following shape:

In case retail sale invoices are issued in the above format, the VAT dealer should compute the element of tax on his total sales of the day taxable at different rates by the following formula :

tax = r x Sales,

100 + r

where r is the rate of tax (If rate of tax is 10%, r is 10)

Illustration – If total sales of the day taxable at 4% and 10% are respectively Rs.4,160/- and Rs.2,200/-, the tax will be Rs.160 and Rs.200 respectively, total Rs.360/-.

(3) Only an original copy of a tax invoice shall be valid to set up a claim of input tax for the purposes of sub-section (2) of section 8. The original copy shall bear the words “Valid for input tax” on it.

(4) Before making use of any new series of invoices and delivery notes, the dealer shall inform the assessing authority concerned of their serial numbers.

(5) Every dealer shall maintain a ‘Petty Sale Book’ for keeping record of un-invoiced petty sales made by him because he is not required to invoice such sales under sub-section (2) of section 28. In Petty Sale Book shall be recorded each un-invoiced petty sale or aggregate of group of sales made near about the same time rate of tax wise without necessarily making mention of the customer’s name and description, quantity and per unit price of the goods sold. The total of each day shall be struck separately and posted in Day Book.