tax consultant
154 Points
Joined December 2008
1. There is no prescribed format for Invoice to be raised under CST Act.
2. Tax Invoice is the name used under Local VAT Act, and let me remind you, there is no prescribed form for it also. Rules states what it must inlcude e.g. VAT TIN No, declaration, "TAX Invoice" used promintely in the invoice etc.
3. This is for one simple reason, so that when Inoput tax credit is claimed they are backed by TAX Invoice and which can be easily identified and segrated from tones of Invoices.
4. When you issue Invoice for CST Sales, you must remember that NO CREDIT is avaliable to your purchaser for CST paid on it. Now it happnes many times, that as word TAX Invoice is printed on the bill, it is recorded as Local purchase by the data entry person and credit of input taxes is claimed. Then when it is found afterwards, one is require to pay back the amount along with interest.
5. so as normal business practice, its advisable to issue interstate Sales bills not as Tax Inovice Biils
Thats all