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Govt. pushes paperless transaction with digital invoice

The Central Board of Excise and Customs is encouraging trade to replace paper documents with electronic documents and use digital invoices

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Soma Tah
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NEW DELHI, INDIA: The Central Board of Excise and Customs is encouraging trade to replace paper documents with electronic documents and use digitally signed invoices. This will improve the ease of doing business as well as reduce the cost of transaction too, hopes the finance ministry.

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During the union budget, legal provisions were amended with twin purpose of providing that the invoices issued by manufacturers or service providers can be digitally signed and to enable manufacturers or a service providers to store legally prescribed documents electronically. A notification and a circular have been issued in this regard.

The assessee proposing to use digital signature

- shall use Class 2 or Class 3 Digital Signature Certificate duly issued by the Certifying Authority in India.

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- shall intimate the following details to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise, at least fifteen days in advance:-

a) name, e-mail id, office address and designation of the person authorised to use the digital signature certificate

b) name of the Certifying Authority

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c) date of issue of digital certificate and validity of the digital signature

- shall intimate the details such as name, e-mail id, office address and designation of the person authorized to use the digital signature certificate, name of the Certifying Authority, date of issue of Digital Certificate and validity of the digital signature etc., to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise at least 15 days in advance.

The assessee opting to maintain records in electronic form

- shall ensure that appropriate backup of records in electronic form is maintained and preserved for a period of 5 years immediately after the financial year to which such records pertain.

- shall maintain separate electronic records for each factory or each service tax registration, if he/she has more than one factory or service tax registration.

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