Menu
Restriction on issuance of credit note
Pls explain the meaning and purpose of Proviso of sub sec. (2) of Sec. 34 in respect of restriction of issuance of Credit note..... *"Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person."*
Replies (3)
Example:A supplier mentions tax component in a tax invoice as 120/-. But later realizes tart actual tax amount is 100/-. Then he will issue credit Note to recipient for that extra20/- and also detail
In his returns filed. Without credit note, he would be liable to tax of 120/- but now his tax liability after CN, can be adjusted to 100/-
But There is a condition for claiming or adjusting this reduced liability.The supplier should not have passed on his tax burden on the recipient. Or he should not have collected the gross amount from
Recent Topics :
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
- GST RATE ON FILM PRODUCTION
- Section 54
- Why are foreign investors suddenly buying Indian s
- TDS ON IMMOVABLE PROPERTY - PURCHASE FROM NRI &
- Query to Tax Garden tax consultant
- Subject: Urgent Assistance Required – TRACES
Related Topics :
CAclubindia
