REGARDING CREDIT NOTE

[ranjit kunar]

What is the rule for credit note???suppose there in an invoice in the month of March'14 and the credit note raised in the month of april'14. should we adjust the credit note with vat output. What is the period for taking credit note...Can we adjust service credit note eith vat output

AI Summary

Credit Note for March Invoice Issued in April Can't Adjust VAT This Year; Service Tax Credit Not Applicable A query was raised regarding the rules for credit notes, specifically whether a credit note issued in April for an invoice from March can be adjusted with VAT output. The response clarified that due to the time gap, tax adjustments cannot occur in the same financial year but may be possible in the subsequent year. Additionally, it was noted that service tax credit cannot be adjusted with VAT output tax, as they are governed by different legislative bodies, with one under the Central Government and the other under the State Government.