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EXICSE (Legacy) 619 views 2 replies

GOOD EVENING TO ALL EXPERTS,

OUR COMPANY IS EXCISABLE UNIT. WE SOLD FINISHED GOODS TO PARTY WHICH IS EXCISE EXEMPTED UNIT. BUT DUE TO SOME IQC MISTAKE PARTY RETURN SOME MATERIAL US. BUT PARTY RETURN MATERIAL THROUGH DEBIT NOTE. SO WE TOLD TO PARTY THAT PLEASE RETURN MATERIAL IN SALE INVOICE INSTEAD OF DEBIT NOTE.MY QUERY IS THIS THAT CAN WE RECEIPT MATERIAL FROM PARTY THROUGH DEBIT NOTE.BACAUSE PARTY IS EXCISE FREE UNIT SO HE CAN NOT SHOW EXCISE IN THEIR SALE INVOICE.PLEASE HELP SIR

 

Replies (2)

Debit note material mainus in E.R.1 

I think the party is correct by returning the goods through debit note cause: 1st of all it is not the sale for the party so the sale invoice cannot be used rather it is purchase return. You had to reverse the amount of excise on goods returned by the party.


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