Hi everybody,
It has become an accepted practice of issuing unsigned bills with a note below 'This is computer/system generated bill and does not require stamp/signature'. Surprisingly, no one seems to have problem in this!
1.My query is whether such bills are valid in the eye of law under various Acts viz. Information Technology Act, Contract Act, Income Tax Act and GST Act?
2.As per my understanding such expenses of unsigned bills can attract disallowance of expenses and ITC under Income Tax Act and GST respectively.
3.Who is authorised to issue bill/document with such note below? What is the procedure/compliance for getting such authorization?
4.Why nobody from any stream of legal fraternity objecting to it, succumbing to such unlawful (?) practice of clients?
Experts, please throw some light on this issue.
Hi, I also have a similar view. Some information on this:
It is important to note that the Information Technology Act, 2000 validates the electronic signatures only of the issuer has following reliable process (this process is mentioned in Section 3-A o the Information Technology Act, 2000),
(a) the signature creation data or the authentication data are, within the context in which they are used, linked to the signatory or , as the case may be, the authenticator and of no other person;
(b) the signature creation data or the authentication data were, at the time of signing, under the control of the signatory or, as the case may be, the authenticator and of no other person;
(c) any alteration to the electronic signature made after affixing such signature is detectable
(d) any alteration to the information made after its authentication by electronic signature is detectable; and
(e) it fulfills such other conditions which may be prescribed.
An article on TMI on this subject - https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=9079
Hope this is useful
CAclubindia
