Debit Note

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This query is : Resolved

Ravi Kiran (Querist)

10 December 2009 Sir,

Our company takes credit of the amt for which we have raised debit note.
For Ex We have recd bill for Rs 110.30
and we have raised the debit note for Rs 50/- and remaining amt of Rs 60.30 is paid by cheque.
Is it correct can we take credit of the amt for which we have raised debit note

Please Suggest

Regards

Ravi Konda

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

10 December 2009 Yes you can debit the particular vendor and credit the expenses

Ram Avtar Singh

Ram Avtar Singh (Expert)

11 December 2009 You can not take service tax on none aceptable service which is not paid by you.

S.Siju Gemin

S.Siju Gemin (Expert)

11 December 2009 Your question is not clear Ravi Kiran, Is it purely accounting related or it relates to Cenvat credit.

Let me assume it as accounting related:-
Example:-
Step1: When you receive the bill:-
Dr: Expenses Rs.110.30
Cr: Supplier Rs.110.30

Step2: When you raise debit note:-

Dr: Supplier Rs.50.00
Cr: Expenses Rs.50.00

Step3: When you pay supplier:-
Dr: Supplier Rs.60.30
Cr: Bank Rs.60.30

I hope I have clarified your query

Ravi Kiran

Ravi Kiran (Querist)

11 December 2009 It is related to cenvat credit.

RS 50/- debit note is raised on the
A co and the same amt credit is given to B co since that much amt of work was done by B co instead of A co, and same amt is being paid to B co by cheque.

Hope it is clarified .

Now i want to know whether it is correct to take credit.

Rasesh

Rasesh (Expert)

12 December 2009 Take credit on the invoice issued by B. Its a seperate issue.

As regards A, if some invoice was received from A for 100 + tax. Now you are issuing a debit note to A for 50. Then reverse credit to that extent.

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