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Excise query

Deepak Patel (CA Final) (136 Points)

21 August 2014

Excise goods purchased by the clint, and due to wrong delivery of goods the goods are to be returned. Wheather Debit note to be issued or sale bill? Because for returning the goods to party they need invoice(Valid document) for claiming excise, and if v issue invoice it'll be increase in turnover without any profit.

Please can any one help me out?

Thanks in advance

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6 Replies

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 21 August 2014

They need invoice for claiming of duty for the returnable goods. It is not sale, this is cleared as such. You can eliminate that invoice at the time of calculating turnover.

Deepak Patel (CA Final) (136 Points)
Replied 21 August 2014

ok.. But sir wat in case of Vat returns?

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 22 August 2014

Under VAT, it should be treated as Purchase return. Debit note will serve the purpose, but some states like Karnataka, debit note is not a valid document for claiming input tax credit.

Deepak Patel (CA Final) (136 Points)
Replied 22 August 2014

Thanx..

Even am from karnataka state and that's the main problem.

anyways thank u.

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 22 August 2014

You can raise the invoice with payment of duty and tax what you have taken credit at the time of purchase. The same will be taken credit at your supplier end because VAT is also cenvatable.