Purchase goods return

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2013 INCASE WE ARE EXCISE MANUFACTURER AND PURCHASED A CHEMICALS 100KG, OUTOF WHICH WE REJECT THE 20KG CHEMICALS AND SENT BACK TO SUPPLIER (IT IS ALSO EXCISE MANUFACTURER)NOW I KNOW THAT WE HAVE TO FOLLOW EXCISE RULES 11 FOR INVOICE FOR PURCHASE GOODS RETURN

BUT MY QUESTION IS AS FOLLOWS
INSTEAD OF RAISING INVOIE CAN WE ISSUE DEBIT NOTE TO THE SUPPLIER FOR PURCHASE RETURN AND IN DEBIT NOTE CAN WE MENTIONED OUR SERIALLY NUMBERED DEBIT NOTE NO. INSTEAD OF OUR SALES INVOICE NO FOR PURCHASE RETURN ?

PLEASE EXPLAIN ME PURCHASE RETURN PROCEDURE UNDER EXCISE RULES AND WHICH OTHER DONCUMENT SHOULD WE MAINTAIN FOR IT

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

08 August 2013 No you can't issue debit note
because if you use debit note then that party can't take excise credit. and you can't that credit also because you returned the material. so excise of that amount will be lost.

Message likes : 1 times

Arun Kumar Singh

Arun Kumar Singh (Expert)
Follow

08 August 2013 The material supplied by supplier is rejected. This has to be sent back to the supplier for rework and return. CBE&C, vide its Circular No. 120/30/95-CX-dated 1.5.95, has clarified that such material can be returned under procedure prescribed under rule 4(5)a of cenvat credit rules.

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

09 August 2013 Dear Mr. Singh
in Q it is not mentioned that the material is returned for rework. it is said that it is rejected so this rule can't be applied

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2013 THANKS FOR YOUR REPLY BUT STILL I HAVE CONFUSION WHAT TO DO SHOULD I ISSUE DEBIT NOTE OR SALES INVOICE TO SUPPLIER FOR PURCHASE RETURN (IN CASE WE R USING ACCOUNTING SOFTWARE TALLY ERP 9 REL 4.51 IN THAT THEY HAVE GIVEN PROCEDURE FOR RELEASING DEBIT NOTE INSTEAD OF SALES INVOICE FOR PURCHASE RETURN)

PLEASE SOLVE MY CONFUSION

Querist : Anonymous

Querist : Anonymous (Querist)