Credit Note issuance adjusts supplier output tax liability when invoice overcharged, goods returned, or supplies deficient. A supplier may issue a credit note when an invoice overstates taxable value/tax, goods are returned, or supplies are deficient; the credit note must be declared in the return for the month issued but no later than September following the financial year end or the annual return date, and tax liability is adjusted as prescribed, except where tax and interest have been passed on. Conversely, where an invoice understates taxable value/tax the supplier must issue a debit note (including a supplementary invoice), declare it in the return for the month issued, and adjust tax liability as prescribed.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Credit Note issuance adjusts supplier output tax liability when invoice overcharged, goods returned, or supplies deficient.
A supplier may issue a credit note when an invoice overstates taxable value/tax, goods are returned, or supplies are deficient; the credit note must be declared in the return for the month issued but no later than September following the financial year end or the annual return date, and tax liability is adjusted as prescribed, except where tax and interest have been passed on. Conversely, where an invoice understates taxable value/tax the supplier must issue a debit note (including a supplementary invoice), declare it in the return for the month issued, and adjust tax liability as prescribed.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
