Vat on Credit note

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Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2010 We are issuing credit note to our customer in the year 2010-11 for rate difference on previous years sales i.e.2009-10. Can the customer take credit of vat on that credit note.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 May 2010 yes.it can be taken based on your credit note

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Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2010 Thank U Sir,

But Can you tell me under which Section or rule Vat Credit will be allowed on credit/ debit note.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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12 May 2010 Please mention the State for Reply better

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2010 Sir,

This is within maharashtra Satate only

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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12 May 2010 As per MVAT act please refer the same

Section 63 (5) and (6) of the MVAT Act provides that the amount of goods returned during any period shall be reduced from the total turnover of sales/purchase of that period in which the goods returned, provided that the goods has been returned within a period of six month from the date of sale or purchase thereof as the case my be. Similarly other debit and credit notes, which are in the nature of increasing or reducing the sale price and/or the purchase price shall be given effect in the month in which such debit/credit note has been entered in the books of account of the dealer. Thus the amount of set off, for that period, shall get increased or reduced to the extent it related to purchase return and debit/ credit notes having impact on the purchase price of goods

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