Dear Sir,
How to pass an entry of credit note towards purchase return in which we have only been refunded the basic amount of material and the TAX is not refunded ?
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 16 April 2016
Normally the C/N is the replicaof an Invoice Tax also tobe refunded. But the entry can be
Debit - Supplier
Credit - Materials
i.e, reversal of invice entry
Shubham Gupta
(Business Consultants)
(2077 Points)
Replied 16 April 2016
Hi Shiva,
As per law(section 9(1) of the DVAT Act) turnover should be reduced accordingly on returning goods and input tax credit should be reversed, whether or not the selling dealer has reversed his output tax.
but in practical we simply pass entry
Creditors A/c Dr
To Purchases A/c
for purchase return and it will not be shown in 2 C ,D reprt at the time of filing return.
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