What is the difference between tax invoices and cash memos ?
The tax invoice is the document issued by the registered dealers to another registered dealer on the basis of which a purchasing dealer can claim input tax credit. Tax invoice is not issued by the dealer who has opted for lump-sum tax or composition scheme. However, only VAT dealers are authorized to issue tax invoices; all other dealers will issue cash memos. ITC will be given only on tax invoice. Q.10 What is the difference between exempted and zero rated sales. Exempted sales are listed in Schedule-B of HP VAT Act and both zero rated and exempt sales do not charge VAT. For zero rated sales you are eligible to claim input tax credit on your purchases whereas for exempt sales you are not eligible to claim ITC paid on your purchases.
