“Invoices are crucial documents for administering VAT.’’ Discuss. Ans - Invoices are crucial documents for administering VAT as in the absence of invoices, VAT paid by the dealer earlier cannot be claimed as set off. Invoices should be preserved with full care. In case any original invoice is lost or misplaced, a duplicate authenticated copy must be obtained from the issuing dealer. A VAT invoice: (i) helps in determining the input tax credit; (ii) prevents cascading effect of taxes; (iii) facilitates multi-point taxation on the value addition; (iv) assists in performing audit and investigation activities effectively; (v) checks evasion of tax.
Posted on: Fri, 02 May 2014 05:15:01 +0000
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