Tax charged by the commisshionor on the credit note

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Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2012 dear all,

deputy commishionor of the sales tax dept. charged the tax on the credit notes given by the company.I AM THE DISTRIBUTOR OF THE SAMSUNG MOBILE COMPANY STARTED SOME SCHEMES FOR THE RETAILERS AFTER THE ACHIEVEMENT OF THE SCHEMES COMPANY GAVE THESE SCHEMES TO ME AND SAID TO DISTRIBUTE THESE SCHEME AMT. TO THE RET. THESE AMT. THEY DEDUCT IN THE BILL AFTER CHARGING THE TAX MEANS SUPPOSE THEY MADE A BILL OF A MODEL X OF AMT. 1000 THEN THEY CHARGE THE VAT OF RS. 1000 WHICH IS 50 AFTER CHARGING THE TAX OF 5% THEY DEDUCT THE CREDIT NOTE AMT. OFFICER IS SAYING THAT YOU HAVE TO GIVE THE 5% TAX ON THE CREDIT NOTE AMT. TOO WHICH WAS NOT MINE I DISTRIBUTED THAT C.N AMOUNT TO THE RET. THEN WHY WILL I HAVE TO GIVE THE AMOUNT OF TAX OFFICER DIRECTLY HAVE TO TAKE THE TAX AMOUNT TO THE RET. PLZ. HELP ANYONE IN THIS MATTER

sharma.ctc@gmail.com

sharma.ctc@gmail.com (Expert)

20 July 2012 Please clarify your question and give proper examples..
2ndly you also not provided the details of your location (as because VAT rules differ state to state)

But, whatever I understood from your question, I believe the DC is right, because what ever debit/credit effect we give in relation to the sales or purchases we make we have to pay the Tax on it.

One of my friend is also dealing in mobiles, and he also have to face these problems...

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2012 i am from Budaun (u.p).Suppose there is a bill in which they billed a mobile to me @1000. After this amt. they charged the tax of 5% on the whole amt. which is rs.50 after charging the tax. They deduct the amount of credit note then why are they taking the tax on vredit note amount plz. help