I think you want to say retail invoice and tax invoice. Tax invoices are issued by registered dealers and subjcet to few conditions purchaser get the credit of VAT paid against such puchases. No such credit is available is purchases has not been made against tax invoices.
If a company wants to take credit of vat paid on purchase of goods it need to have a tax invoice as vat credit can only be claimed on base of tax invoice and not retail invoice.
Retail invoice is also a correct proof of sale but not for vat credit, so for company (or products) not taking any vat credit, retail invoice is perfectly valid
Retail, Commercial and Tax Invoice are all different.
Tax Inv = For availing tax benefits, eg. Tax Credit,
Commercial Inv. = For Payment / Accounting
Retail Inv. = For Retail Purchasers
Theoritically a single invoice can satisfy requirement of both tax invoice and comm. inv. However, it is better to have your seperate tax invoice for numerous reasons;
one of which is tax invoice is accompanied with good while it is being transported.
CAclubindia
