Vat in credit note?

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vinayak c. chavan

CPT passed

1016 Points Joined April 2010

We are pvt ltd co. One of our customer returned us some good in May 2012 purchased by him in March 2012. But for this we have not raised credit note against him. Now in December 2012 that customer want to raise credit note agaisnt him for same transaction. How shoudl i give effect of VAT in credit note. Will sales tax department allow if credit note if given after 6 months whihc includes VAT?

Replies (2)

ashok

Qualified CA

34 Points Joined July 2012

hi frnd.

You can not file a revised return becoz it exceeds 6 months from the date of original filing of such return.

Present you have alternative choice to issue credit note against your debtor is that raise the credit note with amount of sales excluding VAT on such sales .

becoz, when you sold the goods ,you already paid OUTPUT VAT and The debtor might be claimed VAT CREDIT. Now both of you dont have a choice to file a revised return.

Example: Credit Sales Rs.1000/- vat 14.5%

Entry on the date of sale:

Debtor A/c. Dr 1145

To Sales 1000

To OUT PUT VAT 145

Now you required to pass raise credit note only for 1000/- .

It is my opinion only