MVAT - BILL OR CASH MEMORANDUM

Section 86(6) requires every registered dealer to issue, at his option, either a Tax Invoice or Bill/Cash Memorandum, for every sale made by him.

(Issue of bill/cash memorandum or Tax Invoice, as the case may be, is mandatory for each transaction of sale exceeding Rs. 50/-).

The dealer, choosing to issue Tax Invoice must comply with the requirements prescribed in sec. 86(2), enumerated above.

The dealers, who have opted for Composition Scheme u/s. 42(1), 42(2) or 42(4), are not entitled to issue a Tax Invoice. Such dealers shall issue a Bill or Cash Memorandum.

A bill or cash memorandum should be serially numbered, dated and signed by the dealer or his servant or manager. Such bill or cash memorandum shall contain such particulars as may be required/as may be prescribed. It shall also contain a declaration as provided u/r. 77(3).

A duplicate copy of all such bills/cash memorandum or Tax Invoice is required to be preserved for a period of eight years from the end of the year in which sale took place. (Earlier the period of preservation was three years only however the period of preservation it is now changed to eight years by an amendment through Mah. Act No. VIII of 2012 dated 25-4-2012).