We have raised bill to client in the month of March-2012 by levying 10% ST. We also paid the ST in the month of March, and in the month of April a credit note was issued for minimizing the bill amount due to rate difference, now at the time of original bill rate was 10% and at the time of issue of credit note the rate was changed to 12%. Now questions are: 1) How Credit Notes are treated when there is change in rate? 2) In such case how the information to be present in ST-3 Return?
07 November 2012
The excess tax paid on account of credit note can be taken credit under Rule 6(3) of ST Rules and shown as adjustment in entry4I(a)(iii) of ST3. Change in rate of tax do not have implication in this case of credit note.
CAclubindia
