Commericial invoice
devineali
(Querist) 18 July 2012
This query is : Resolved
Definition of commercial Invoice: describe with Details and Shedule, Sections, Clause, Subsection etc. What is it? tell me plz
devineali
(Querist) 18 July 2012
No this is not completely acadmic but little bit.
Actually my question is this Difference between Commercial Invoice and Tax invoice and Exsice cum vat invoice.
Does commercial invoice takes apart in UP Vat like Tax Invoice. if yes! why? if No! so why? that's my query
prabhakar singh
(Expert) 19 July 2012
Strange but true your query is neither of a factual problem nor is purely academic.
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.
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.
Some of the VAT states,that the tax invoice should be provided by the seller "at the time of sale".
All in all it is confusing but not in a big manner as some of us are scared.
INVOICE IS INVOICE.
devineali
(Querist) 19 July 2012
Thanks Mr. Prabhakar.
Actually i had purchased Windows and Material from M/s XYZ outside of UP though M/s XYZ raized Commercial Invoice simeltinously raized Excise cum VAT INVOICE now problem arise how to account for. Purchase Department Put Commercial Invoice No. in Purchase register instead of Tax Invoice No. But VAT Department claimed "Put Tax invoice No." because Form 38 (Road Permit) contained Tax invoice No. on own Face. and they also claimed "A commercial invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders Although there is no standard format, the document must include a few specific pieces of information such as the parties involved in the shipping transaction, the goods being transported, the country of manufacture, and the Harmonized System codes for those goods. A commercial invoice must also include a statement certifying that the invoice is true, and a signature.
A commercial invoice is used to calculate tariffs, international commercial terms (like the Cost in a CIF) and is commonly used for customs purposes.
But purchase department Claimed Conceptually both are same. No metter will arise in vat department to showing Commercial invoice no. or Tax invoice No.
Now Justice remains in conflict, tell me which ones claim rightous.
Anirudh
(Expert) 19 July 2012
Dear Devineali,
Ideally, your last post should have appeared in the first query.
Because it gives the facts and also the interpretation being done by the UP Commercial Tax Department. In this background your query (which you posted first) would not have been treated as "Academic" by the experts.
Even now, the instead of examining the issue from the angle as to "What is commercial invoice", better look it from the point of the Commercial Tax Department people. All that they say is, enter the Tax Invoice No., in your purchase register, so that it can be easily linked with the Form-38 in which the same number has been given.
All other explanations by the VAT people as to what is "Commercial Invoice" etc., has no importance.
In fact, if only in the form-38 the invoice No. (which you call it as commercial invoice) has been shown, and the same particulars had been shown in your purchase register also, there would have been no ISSUE at all.
devineali
(Querist) 20 July 2012
Thanks Mr. Anirudh:
How to treat this query now this is no metter.
it became totally Educational war in office. who is right.
Me: this is only for custome purpose or mationed above.
Purchase department: Tax invoice and commercial invoice both are equale .
Justice in your hand ......... whos' right.
devineali
(Querist) 20 July 2012
Thanks Mr. Anirudh:
How to treat this query now this is no metter.
it became totally Educational war in office. who is right.
Me: this is only for custome purpose or mationed above.
Purchase department: Tax invoice and commercial invoice both are equale .
Justice in your hand ......... whos' right
Anirudh
(Expert) 20 July 2012
Dear Devineali,
If "it became totally Educational war in office as to who is right", naturally our Experts are right that it is a purely academic query, not worth the time, energy and expertise of the Experts!
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.
