Guidelines for introduction of VAT Invoice

 

1.                  VAT Invoice is the most important document under VAT system.

2.                  VAT Invoice establishes the tax liability of the seller and is the evidence for deduction of input tax credit by the purchaser.

3.                  VAT Invoice is to be issued only by selling taxable person to the purchasing taxable person.

4.                  Section 45 of Punjab VAT Act, 2005 read with rule 54 & 55 of Punjab VAT Rules prescribes the particulars required to be filled in VAT Invoice and Retail Invoice. VAT Invoice shall contain the following information :–

(a)               Name, address & VAT registration number of the seller

(b)               Date of issue of the Invoice

(c)               Mechanically printed Serial No. of the Invoice

(d)               Quantity and description of the goods sold

(e)               Unit price and the amount charged (excluding VAT)

(f)                 Amount of VAT charged

(g)               Name, address & VAT registration number of the purchaser

(h)               Serial Number of the Form VAT-XXXVI (applicable in inter-state transaction) (not operative at present)

(i)                 Serial Number of Form VAT-XXXVI in case of sale/transfer of goods out side the State. (not operative at present)

(j)                  GR.No. and name of the Transport Co., where applicable

(k)               Signature of authorized person

5.                  VAT Invoice should be prepared in triplicate i.e. original, 2^nd copy and the 3^rd copy.

6.                  The original invoice is to be issued to the purchases and the 2^nd copy of the VAT Invoice is meant for transport & 3^rd copy to be retained by the seller.

7.                  Purchaser taxable person shall claim input tax credit on the basis of original copy only. The original copy shall carry the note Input Tax Credit is available to a taxable person against this copy.

8.                  First copy shall be made available by the purchaser to the department, as and when required, for the purpose of cross-verification of sales reported by sellers and purchases reported by purchasers.

9.                  2^nd and 3^rd copy must be marked as this copy does not entitle the holder to a tax credit. The 2^nd copy shall carry the note This copy does not entitle the holder to claim Input Tax Credit

 

10.             Colour of copies of VAT Invoice should be made different from that of the original for easy identification.

11.             Those opting for registration as TOT dealers shall issue Retail Invoice which shall also be in duplicate.

12.             The Retail Invoice shall carry all the details prescribed for VAT Invoice in clause a, b, c, d, j and k at point 4.