debit note

[Sanjay Singh Bora]

How to treat Debite note after six month

Stock value=Rs. 10000 and vat is 5% , total value=10500

But vendor is issued credit note = ₹ 10000

Who pay vat=Rs.500

[Ganeshan Kalyani]

Sir VAT credit on sales return is not eligible if sales return happened after six months. Hence the credit note would not carry the vat element. Thanks.

AI Summary

VAT Credit Ineligible on Sales Returns After Six Months: Debit and Credit Notes Explained A query was raised regarding the treatment of a debit note issued six months after a transaction, involving a stock value of 10,000 with a 5% VAT, totaling 10,500. The vendor issued a credit note for 10,000. The response clarified that VAT credit on sales returns is not eligible if the return occurs after six months, meaning the credit note would not include the VAT component.