Definition of Tax Invoice
A legal document issued by a registered dealer (seller) on the event of a sale, to another registered dealer (purchaser), who is not the consumer, is known as a tax invoice. The invoice should be created in triplicate i.e. original for the buyer and the rest two are retained by the seller.
Tax invoice plays a significant role in any country’s tax system as the dealers issue invoices, for recognizing a transaction. At the end of the financial year, they had to submit the details of these invoices to the relevant tax authorities. So, this is an important tool used by the government to avoid tax evasion.
A typical tax invoice looks like the image given above. The tax invoice may consist of the following details:
a) Invoice Number
b) Date of issue of invoice.
c) Name and address of the seller
d) Name and Address of the buyer
e) Tax Identification Number (TIN)
f) Quantity
g) Unit Price
h) Total Amount
i) Tax Charged
j) Signature of authorized signatory
Definition of Retail Invoice
A commercial instrument issued by the seller to the purchaser i.e. end user of the goods, is known as Retail Invoice. Generally, the invoice is created in duplicate, i.e. original for buyer and dupicate for the seller. It is used to request for payment from the buyer. Retail invoice can also be issued on account of interstate sales or sale to an unregistered dealer.
A typical retail invoice may look like the image given above. You can find the following details on the retail invoice:
a) Invoice Number
b) Date of issue of invoice
c) Details of buyer
d) Details of seller
e) Quantity
f) Unit Price
g) Total Amount
h) Discount (if any)
i) 'Signature of seller or his authorized agent
