PAYMENTS DELAY

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This query is : Resolved

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This discussion addresses a client's delayed payments to a main dealer. The dealer is demanding settlement of outstanding balances, including credit notes and newly raised debit notes for the payment delay. The core questions revolve around whether credit notes must be paid and if debit notes can be deducted. The consensus suggests that debit notes must be paid, and the dealer may not have paid GST on the credit note, with the debit note serving as a caution for prompt payment.

raghavendra b

raghavendra b (Querist)

19 June 2024 DEAR SIR,

ONE OF MY CLIENTS PURCHASED GOODS FROM MAIN DEALER, HE HAS NOT PAID PAYMENTS IN DUE DATE NOW THEY WANTS CLOSE THE BUSINESS AND CLEAR ALL DUE BALANCES NOW THE DEALER DEMANDING CLEAR THE BALANCES INCLUDING CREDIT NOTES RAISED BY THEM. FOR THE DELAY IN PAYMENTS THEY HAVE RAISED DEBIT NOTES ALSO.

1.NOW MY DOUBT IS MY CLIENT HAS TO CLEAR THE BALANCES INCLUDING THE CREDIT NOTES RAISED BY DEALER IF YES
2.THEY HAVE TO LESS THE DEBIT NOTES RAISED BY THEM WHILE CLEARING THE DUE PAYMENTS.

3. I HAVE THOUGHT THAT ITC CAN NOT BE CLAIMED IF THEY HAVE NOT CLEARED PAYMENTS IN DUE DATE. SO IN THIS REGARD THEY DEMANDING THE PAYMENTS ALONG WITH CREDIT NOTES BECAUSE THEY HAVE PAID GST ON THAT.

PLEASE CLEAR MY DOUBTS WAITING FOR YOUR SUGGESTIONS

REGARDS

PLEASE

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 June 2024 1 Yes.
2 No, debit notes has to be paid.
3 They might not have paid GST on credit note.
It's only a caution to you to make the payment without delay.

raghavendra b

raghavendra b (Querist)

20 June 2024 THANK YOU FOR YOUR REPLIES SIR,

NOW WE HAVE TO CLEAR ALL THE BALANCES INCLUDING CREDIT NOTE RAISED BY THEM, WHY DEBIT NOTES CAN NOT BE DEDUCTED FROM THE BALANCES

REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 June 2024 You have to pay debit notes raised by them.
You can request payment for credit note waiver.

raghavendra b

raghavendra b (Querist)

20 June 2024 THANK YOU SIR FOR YOUR REPLY,

REGARDS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 June 2024 You are welcome..
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