Nov 2017

Meaning of TAX Invoice and Retail Invoice and their Difference

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Meaning TAX & Retail INVOICE

Q.1. How many types of invoices would be required to be issued under VAT?
A.1. There are two types of invoices that can be issued:

Tax invoice
Retail invoice

Q.2. What is a tax invoice and who will issue it?
A.2. Under VAT, tax invoice is a very important document. A registered dealer selling goods to another registered dealer shall issue tax invoice.

Q.3. What should a tax invoice contain?
A.3. A tax invoice should contain the complete details about selling as well as purchasing dealer. The invoice should also contain details about sale viz. description of goods, quantity, rate per unit and total value of goods. The Tax invoice may be in the following format:

Book No. Invoice No. …………… Date
Name of selling dealer
Name of purchaser
Sr, No. Description of goods HSN Quantity Rate per unit Amount
VAT @…….
Grand Total

(Signature of authorized person)

Q.4. What is a retail invoice?
A.4. A retail invoice is an invoice issued by registered dealers for all sales where a tax invoice is not authorized to be issued. It would not be necessary to issue retail invoice for the sale value is less than rupees one hundred.

Q.5. What should a retail invoice contain?
A.5. Retail invoice should contain the same details in tax invoice except TIN of purchaser. A retain invoice may also be in the format for tax invoice. But on the top of the invoice, instead of tax invoice, retail invoice should be printed.

Q.6. How many copies of the tax invoice/retail invoice should be prepared?
A.6. A tax invoice shall be prepared in triplicate. The ‘original’ and ‘duplicate’ copies shall be issued to the purchaser and the selling dealer shall retain ‘triplicate’ copy. Retail invoice may be prepared in duplicate.

Q.7. Which type of invoice will have to be issued for inter state sales?
A.7. Retail invoice shall be issued for interstate sales, interstate branch transfers and exports.

Q.8. Who is authorized to sign tax invoice?
A.8. A tax-invoice has to be signed by an authorized signatory. Sign of such a person or persons should be submitted to the department in Form 101C.

Q.9. Who should sign retain invoice?
A.9. A retail invoice can be signed by authorized person.

  • What is the difference tax invoice or retail invoice in india?

Ans. As per statewise VAT Act these two type of invoices are issued by seller to purchaser. Tax Invoice- This is issued to registered VAT dealer only or who have TIN no. On the basis of Tax Invoice purchaser can take the credit of VAT paid while discharging his VAT liability. Retail Invoice- This is issued to unregistered VAT dealer only or who have not TIN no.


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