CREDIT NOTE TREATMENT

[Guest]

what is the treatment of credit Note?Suppose invoice done in the month of march'15 and credit note done in April'15.Shall we adjust the credit note with Output tax??What is the period of taking credit note

[YAGAY andSUN]

Dear Ranjit,

Please check second proviso of the Rule 26 (1) of the WBVAT Rules, 2005. For your ready reference we are mentioning the relevant text of the aforesaid proviso,

Provided further that subject to the time limit prescribed herein above, adjustment through
debit note and credit note shall be made within nine months from the date of transaction
in question.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Credit note adjustment subject to statutory time limit; adjustments must be recorded within the prescribed period for output tax. Adjustments to output tax by means of credit notes or debit notes must be completed within a statutory time limit: specifically, subject to other prescribed time limits, such adjustments must be made within nine months from the date of the underlying transaction.