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Not issuing credit note

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Allauddin Patel

Accountant

115 Points Posted on 05 March 2021

Dear sir /madam
we sold goods to one of our party ,after receiving goods the party told rate in sale invoice is higher than actual rate and party issued debit note on us after reducing the invoice amount,,
my question is if we not issued credit note against that debit note then what will happen.. will it be problem for us in future...?
kindly clarify to me

Replies (2)

Quick Summary

A business sold goods at a higher rate than agreed, leading the customer to issue a debit note to correct the invoice amount. The seller is asking about the consequences of not issuing a corresponding credit note in response. Failing to issue a credit note can lead to issues with tax liability and potential future complications.