‘Authenticate invoice only through digital signature’

Some common mistakes made by businesses while filing invoices. Experts suggest the way forward

MUST DO

Ensure that different types of invoices (tax invoice, bill of supply, receipt voucher, refund voucher, self-invoice, payment voucher, debit note, credit note & delivery challan) have different consecutive serial numbers

Such invoice numbers should not exceed 16 digits, including special characters such as / and -

If advance received for service/goods is refunded later, assessee has to issue refund voucher. Tax paid earlier can be claimed by way of refund. However, no adjustments can be made in return

Mention the place of supply carefully. Any default or incorrect determination of place of supply can lead to payment of tax at the wrong place. Assessee would then have to pay tax in the correct place and go for refund of tax paid erroneously

Ensure that correct classification of goods and service is done. Any change of rate would have a huge impact on future cash flow

MIND IT 

Many job work/manufacturers have tax invoices and delivery challans as a single document. It is better to have separate serial numbers

Decide whether to issue a tax invoice or receipt voucher for advance received. Do not issue receipt voucher without understanding the impact of the move

While determining place of supply, remember that tax is considered based on the billing address and not the shipping address

Do not depend on rate finder apps & websites. HSN code has to be decided considering the customs classification rules

Authenticate invoice only through digital signature

The Business Standard, New Delhi, 17th July 2017