Debit / Credit Notes-Container Detention Charges

[JAYANTA BANDYOPADHYAY]

One foreign supplier will compensate us towards container detention charges. Should we require to raise Debit Note or They will raise Credit Note. Any Tax -customs duty impact with HSN code.

Please guide

Rgds

AI Summary

Foreign Supplier Should Issue Credit Note for Container Detention Charges; No Customs Duty if Reimbursement Agreed A discussion on a forum addressed whether a debit or credit note should be issued for container detention charges compensated by a foreign supplier. The consensus was that the supplier should issue a credit note. It was noted that if the reimbursement is part of the agreement, no customs duty would apply. Concerns were raised about potential income tax or GST implications, but it was clarified that compensation is not considered income. Participants sought guidance on the role of customs in such transactions, emphasizing the commercial nature of the decision.