27 January 2016
Hello everyone, My client is availing input service from a vendor and book ST input thereon.but vendor use to pay back around 12%(approx.) quarterly according to slab decided between them as bonus.Our client use to decrease its purchase cost by the same amount.My question is whether client have to reverse the ST input also or not.Kindly clarify.
27 January 2016
thanks for reply In case of credit noteST input is reversed but google is paying directly to client. Google is not issuing credit note.
27 January 2016
No sir they are simply paying the amount directly in bank. entry in our books is as follows 1.Bank a/c dr. to vendor a/c vendor a/c dr. to Purchases a/c.