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Credit/Debit Note and refund process

This query is : Resolved 
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(Querist)
28 October 2022 We have purchase a software for HRMS solution, like for employee attendance, salary calculation and generating Pay Slips.
But the they were failed to implement software as per our requirement, and agreed refund the advance amount.

So my question is, what should be the next process for refund ? should I raise raise debit note and after receiving my debit note they will raise credit note or no need to raise debit note, and they will directly issue credit note and refund the amount ?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
28 October 2022 No need to raise debit note, and they will directly issue credit note and refund the amount.
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