Condition Cancelation of Invoice

[RAM SHARMA]

Dear Experts,

Can we cancelled 3 to 5 invoice in a month. What will be the condition and obligation for cancelation the invoice. Is it any reason compulsory to given the department for cancelation the Invoice. Pl. advice.

Thanks 

[YAGAY andSUN]

Cancellation of Invoice:- 

Invoices can be cancelled due to various reasons. You would have to provide intimation to the Central Excise Department via ACES for cancellation of invoice. There is no condition annexed to Cancellation of Invoices. Copies need not be submitted along with returns. Audit party may ask for all the copies to check your contentions.

Further, you would have to also mention the cancelled invoice number in the statutory VAT/CST/Entry Tax returns as the case may be.

[RAM SHARMA]

Is there any time limit to intimate the department for canceled the invoice. To consider that we are preparing the Invoice before 7 to 8 days.

Thanks

[YAGAY andSUN]

Why to make life complicated by not following the Rules and Regulations regarding issuance and cancellation of Invoice under the provisions of Central Excise and VAT/CST Laws.

[RAM SHARMA]

Can we not prepare the invoice before 2 to 7 days because date of preparation and removal of goods seperate mention in the invoice.

Thanks 

[YAGAY andSUN]

How will you justify the preparation of Invoice (in advance from 2 & 7 days) to the VAT/CST Department?  The date of preparation and date of removal of invoice can not be spread from 2 -7 days. There are very stringent provisions in Central and State Tax laws.

 

[RAM SHARMA]

Please tell some rule and regulation in this regards.

Thanks

[Yatin Bhopi]

Please see the Chapter 4 of supplementary instruction (CBEC excise manual)

12 Cancellation of invoices

12.1 When an assessee is compelled to cancel invoice, the following actions should be taken:-

1. Intimation of a cancelled invoice should be sent to the range Superintendent on the same date, whenever possible. However, in case of exceptional circumstances beyond the control of assessee should this not be possible, the intimation should be sent on the next working day;
2. Along with the intimation of the cancelled invoice sent to the range Superintendent the original copy of the cancelled invoice should also be sent.
3. Triplicate copy of the cancelled invoice may be retained by the assessee in the invoice book so that the same can be produced whenever required by audit parties, preventive parties and other visiting officers.

AI Summary

Invoice cancellation procedures require prompt departmental intimation and retention of copies under indirect tax compliance. Cancellation of invoices requires prompt intimation to the tax range-on the same date or next working day in exceptional cases-together with sending the original cancelled invoice copy; retain a triplicate copy for production to audit or visiting officers and record cancelled invoice numbers in statutory VAT/CST/entry tax returns. Routine advance preparation of invoices days before removal is discouraged as it may conflict with central and state tax provisions.