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Debit And Credit Note

SunNy LakHani (12 Points)

04 August 2018

What's The Difference Between Debit And Credit Note

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Deepak Gupta (CA Student) (15922 Points)
Replied 04 August 2018

A debit note should be issued by a supplier in the following circumstances:

The taxable value shown in the invoice is lesser than the taxable value of the supply.
The tax charged in the invoice is less than the tax payable on the supply.

A credit note can be issued by a supplier only in the following circumstances:

The taxable value shown in the invoice exceeds the taxable value of the supply.
The tax charged in the invoice exceeds the tax payable on the supply.
The goods supplied are returned by the recipient.
The goods/services are found to be deficient.

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Vinod Babu (24191 Points)
Replied 05 August 2018

Debit Note and Credit Note are used while the return of goods is made between two businesses.

Debit Note is issued by the purchaser, at the time of returning the goods to the vendor, and the vendor issues a Credit Note to inform that he/she has received the returned goods

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