ISSUE OF CREDIT NOTE

[ANIL KUMAR]

We have raised Invoice in February 2014 which was rejected by supplier in the same month.At that time my unit is exempted from excise.

Presently My unit entered in excise liability from 01.10.2014.

I want to make credit note for invoice raised in Feb. 14 in current month to adjust the account book. Either we charge excise duty or not in credit note?

Regards

Anil Kumar

[MUKUND THAKKAR]

Dear Anilkumar,

Not require charge the excise duty because Initial invoice raised by you was exempted not contain any excise amount.other wise you will pass excess credit note to your customer.

[PAWAN KUMAR]

Dear sir,

No need to pass excise duty on credit note as suggested by Mukund Ji.

AI Summary

Excise duty on credit notes should not be charged when the original invoice was issued exempt and contained no excise.
A credit note issued to adjust an invoice originally raised during an exemption period and containing no excise duty should not include excise. Adding excise to the credit note would contradict the original exempt treatment and impose an undue tax charge on the recipient.