How to invoice the recovery from customer

Save Share

This query is : Resolved

Quick Summary

When shipment delays incur detention charges that need to be recovered from a customer, the question arises whether to issue a debit note or a formal invoice. The consensus leans towards issuing an invoice for these charges, even if it's not your primary business. This approach is recommended as detention charges are not considered part of a composite supply or additional consideration for the main service.

prachee

prachee (Querist)
Follow

31 March 2020 Due to delay in shipment we need to pay some amount as detention charges and as per term , we need to recover the same from the customer .

weather we should raise debit note / or invoice?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

31 March 2020 Raise debit note...........

CA Suresh Jain

CA Suresh Jain (Expert)
Follow

02 April 2020 In my opinion it is neither a composite supply nor and additional consideration and therefore it is appropriate to issue an Invoice for detention charges and charge GST thought it is not your main line of supply.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now