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
Credit Note Inquiry: No Excise Duty Required for Invoice Issued When Exempt, Avoid Excess Credit to Customer. A user inquired about issuing a credit note for an invoice raised in February 2014, which was rejected by the supplier. At that time, their unit was exempt from excise duty, but it became liable from October 2014. They asked whether to charge excise duty on the credit note. Two respondents advised that there is no need to include excise duty in the credit note since the original invoice was exempt from excise duty, and doing so would result in an excess credit note to the customer. (AI Summary)
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