(1) The tax invoice shall contain such particulars as are specified in this section and shall be issued by one registered dealer to another dealer (whether registered or not) on the basis of which the purchasing registered dealer shall be entitled to claim input tax credit.

(2) Every registered dealer making a taxable sale to another dealer (whether registered or not) shall issue to such purchasing dealer a tax invoice, at the time of sale, containing such particulars as specified in sub-section (5), and retain a copy thereof.

(3) The tax invoice shall not be issued by the registered dealer when the sale is-

(a) by a registered dealer paying presumptive tax under section 7 or lumpsum under sub-section (2) of section 16 of this Act; or

(b) of goods declared tax free under section 9 of this Act; or

(c) in the course of inter-State trade and commerce; or

(d) in the course of export out of the territory of India;

(4) For every taxable sale only one invoice shall be issued.

(5) The tax invoice issued under sub-section (2) shall contain the following particulars, namely: -

(a) the words 'Tax Invoice' in bold letters at the top or at other prominent place;

(b) the name, address and number of certificate of registration of the selling registered dealer;

(c) the name, address and number of certificate of registration of the purchasing registered dealer;

(d) serial number and the date on which the tax invoice is issued;

(e) description, quantity, volume and value of goods sold, and amount of tax involved shown separately;

(f) signatures of the selling dealer or his servant, manager or agent, duly authorized by him; and

(g) the name and address of the printer.

(6) Except where tax invoice is required to be issued under sub-section (2), every registered dealer who sells any goods exceeding two hundred rupees, in any one transaction, to any person, he shall issue to the purchaser a retail invoice containing the particulars specified in subsection (7), and retain a copy thereof.

(7) The retail invoice shall contain the following particulars, namely: -

(a) the words 'Retail Invoice' or 'Cash Memorandom' or 'Bill' in bold letters at the top or at a prominent place;

(b) the name, address and number of certificate of registration of the selling registered dealer;

(c) in case the sale is in the course of inter-State trade or commerce or export out of the territory of India, the name, address and registration number, if any, of the purchasing dealer/foreign buyer and the type of statutory form, if any, against which the sale has been made;

(d) serial number and the date on which the retail invoice is issued;

(e) description, quantity, volume and value of goods sold, amount of tax involved, if any ;

(f) signature of the selling dealer or his servant, manager or agent, duly authorized by him; and

(g) the name and address of the printer.

(8) Every registered dealer shall intimate, in writing, to the Assessing Authority, the total number of the tax invoices and the retail invoices got printed and kept for use by him during each year.

(9) The tax invoice shall be issued in triplicate and the original alongwith second copy shall be given to the purchaser or the person taking delivery of the goods, as the case may be, and the third copy shall be retained by the selling dealer.

(10) The retail invoice shall be issued in duplicate and the original copy shall be given to the purchaser and the second copy shall be retained by the selling dealer.

(11) Where tax invoice or retail invoice is not required to be issued, every registered dealer shall issue such other invoice as may be prescribed.

(12) Every dealer shall preserve books of accounts including tax invoices and retail invoices until the expiry of five years after the end of the year to which they relate or for such other period as may be prescribed or until the assessment attains its finality whichever is later.

(13) Where any dealer is a party to any appeal or revision under this Act or any other proceeding, he shall retain every record and accounts which pertain to the subject matter of such appeal, revision or other proceeding, until it is finally disposed of.

(14) Every dealer who maintains the records electronically shall also maintain day to day print-out of all such records and shall retain them for the period specified in sub-section (12), or, as the case may be, in sub-section (13).

(15) The State Government may, by notification, in public interest, exempt any class of the registered dealers from the provisions contained in sub-sections (2) to (14).

(16) Where any dealer contravenes the provisions of sub-sections (2) to (14), the Commissioner or any other person appointed under section 3 may, after affording such dealer a reasonable opportunity of being heard, impose upon him a penalty of two thousand rupees for every contravention.

(17) If any dealer issues a false invoice or receives and uses an invoice knowing to be false, the Commissioner or any person appointed to assist him under subsection (1) of section 3 may, after affording such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty, in addition to the tax to which he is assessed or is liable to be assessed, an amount equal to five thousand rupees or double the amount of tax involved in such invoice, whichever is greater.