TAX INVOICE

[Guest]

PLEASE CLARIFY ABOUT THE TAX INVOICE, I AM SELLING PRODUCTS TO MY DISTRIBUTOR

FOR THE DISTRIBUTOR PRICE EX 30 IN TURN IF THEY SELL THE PRODUCT FOR 34 THEY HAVE TO

PAY VAT FOR THE DIFFERENCE, IF THEY DONT HAVE THE TIN NUMBER WHAT CAN BE DONE

( I AM PAYING THE TAX FOR ₹ 30/-) ALL ARE SMALL OPERATORS AND THEY DO BUSINESS OF

2 TO 3 LAKHS PER ANNUM, AND THEY CAN GIVE ORDINARY BILLS TO THEIR CUSTOMERS OR NOT

PLEASE ADIVSE

THANKS

AI Summary

Guidance on VAT for Distributors Without TIN: Issue Retail Invoices Instead of Tax Invoices, Experts Advise A forum participant inquired about tax invoice procedures for selling products to distributors who lack a Taxpayer Identification Number (TIN). The participant is paying VAT on the distributor price but seeks guidance on how distributors should handle VAT when selling at a higher price. An expert responded that VAT is charged on value addition by registered dealers, and since the distributor's turnover is below the registration threshold, they are not registered and cannot collect VAT. The distributor can issue retail invoices or cash memos instead of tax invoices, which are reserved for registered dealers.