Retail Invoice versus Tax Invoice
Explain the difference between Retail Invoice vs. Tax Invoice?
Expert
Whenever sales transaction doesn’t include any tax component, then the retail invoice is issued. This type of invoice is as well termed as cash memo. No VAT credit can be claimed on the retail invoices.
Whenever sales transaction includes tax component, then tax invoice (that is, VAT Invoice) is issued. Tax Invoice can be issued only by registered dealers just as per the guidelines. In this invoice kind the tax amount is distinctly illustrated and only these tax invoices are eligible for claiming the VAT credit.
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