Difference between Commercial Invoice and Tax Invoice
PrintListen to this Article
Surprisingly it is a teaser now a days to many tax practicing people.
Prior to VAT there were no such two terms get confused, but VAT advent has brought home this strange.
Commercial Invoice may be understood as the seller's bill of sale for the goods sold, specifying type of goods, quantity and price of each type and terms of sale.
We can also call it as a document required by customs to determine true value of the imported goods, for assessment of duties and taxes. A commercial invoice (in addition to other information), must identify the buyer and seller, and clearly indicate the
(1) Date and terms of sale,
(2) Quantity, weight and/or volume of the shipment,
(3) Type of packaging,
(4) Complete description of goods,
(5) Unit value and total value, and
(6) Insurance, shipping and other charges (as applicable)
Tax Invoice should be understood as a document issued by a supplier which shows the amount charged for goods or services as well as the amount of Goods and Services on which tax payable.
A tax invoice could be given by registered dealer may be service tax provider, TIN (VAT) dealer, CENVAT dealer (manufacturer, distributor, I or II stage dealers); while a commercial invoice can be raised by any seller.
An invoice is an invoice. The usage of the term "Commercial invoice" is only to distinguish it from other types of invoices like Excise Invoice, Tax Invoice (in regard to VAT Invoice) etc.
Assume for a while, I take only Excise Invoice for my purposes, is it not a commercial invoice? Or for that matter I take from the vendor only a VAT Invoice (i.e. Tax invoice) is it not a commercial invoice? Both are in all respects a commercial invoice.
But, as I said earlier, only to distinguish it from Excise or Tax invoice on the basis of which one can avail CENVAT Credit or VAT (Input tax) Credit, and other ordinary invoice on the basis of which such credits cannot be availed, the term 'commercial invoice' is being used.
Category : Students Zone | Comments : 0 | Hits : 2869
Top Startup Trends and Funding Updates in India – 2026 India’s startup ecosystem continues to grow at a rapid pace, making the country one of the largest hubs for innovation and entrepreneurship in the world. With new startups emerging across technology, fintech, healthcare, and e-commerce sectors, the landscape for investors and entrepreneurs is evolving dynamically. This article highlights the latest trends, funding updates, and opportunities in India’s startup ecosystem f...
If you're a CA fresher starting your articleship journey, understanding how to handle pressure during busy season is crucial for your survival and growth. Let me walk you through everything you need to know, just like a friend who's been there. What Exactly is Busy Season for CA Students? Before we talk about handling pressure, let's understand what busy season actually means in the Indian CA context. Busy season typically refers to the period from January to March when...
If you're studying auditing or just starting your career as an auditor in India, you've probably heard the word "materiality" countless times. But what does it really mean? And more importantly, why do so many people get it wrong? Think of materiality as the audit world's filter – it helps auditors decide what's important enough to matter and what can be safely ignored. Let me break this down for you in the simplest way possible. What is Materiality in Audit...
NMC Notifies Medical Education reform 2020
NMC Notifies Medical Education reform 2020 The National Medical Commission (NMC), with an of aim affordable medical education has notified its first major regulation titled as 'Minimum Requirements for Annual MBBS Admissions Regulations 2020 to replace the Minimum Standard Requirements for Medical Colleges, 1999 of the erstwhile Medical Council of India (MCI). Applicability: applicable to all new medical colleges proposing to be established, and to the established medical col...
First let us tell you few facts about exams CA CS CMA examinations before moving on to the tips regarding its planning and preparation. ICAI established in the year 1949, has around 2.10 lakh members at present. More than one lakh students join the Chartered Accountancy course every year. ICSI established in the year 1980, has around 62,000 members at present and around 3.5 Lakhs students on the roll of ICSI. ICMA established in the year 1959, has around 70,000 member...
Comments