Raising Tax Invoice, instead of credit note

407 views 4 replies

Syed

Student CA IPC / IPCC

61 Points Posted on 12 December 2019

I am a distributor of Mobile phones (HSN 8517).

Company Releases offers (Monthly Schemes) to retailers that, if they sale a certain number mobile set to Final user in a particular month, they will get Monetary Benefits according
to there scheme.

Problem is, instead of providing direct benefits to Retailers, company is asking Distributors to issue invoice to Company (as Distributors have provided service under SAC Code 998397). and also asking Distributors to forward this benefits to retailers on companies behalf.

whether this is Right?
What should I do...?
were I can file a complaint against them?

Pls give your Valuable Advise.

Thanks in advance

Replies (4)

Ravi SADhiyan

Practice

4510 Points Posted on 12 December 2019

Originally posted by : Syed
	I am a distributor of Mobile phones (HSN 8517).Company Releases offers (Monthly Schemes) to retailers that, if they sale a certain number mobile set to Final user in a particular month, they will get Monetary Benefits according to there scheme. Problem is, instead of providing direct benefits to Retailers, company is asking Distributors to issue invoice to Company (as Distributors have provided service under SAC Code 998397). and also asking Distributors to forward this benefits to retailers on companies behalf. whether this is Right?What should I do...?were I can file a complaint against them?Pls give your Valuable Advise.Thanks in advance

Raised Tax Invoice Because Distributer provide service to Company

and Distributer receive Tax Invoice from Retails because he receive Service from retails related to sale of Mobile Phone

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 12 December 2019

Yes... I agreed to Mr Ravi SADhiyan view...

Pankaj Rawat

GST Practitioner

55067 Points Posted on 12 December 2019

No ....... the Circular 105/2019 GST is stating that any services being provided by distributor to company the distributor is require to raise the tax invoice, But this Circular has been Rescinded By Circular 112/31/2019 dated 3/10/19 hence Now the distributor cannot issue the Tax Invoice for such services .
Company has to issue CNT for the same .