https://www.taxtmi.com/forum/issue?id=3299 A supplier invoiced capital goods at an inflated price financed by a financial institution; the purchaser sought refund of the excess. The legal questions are whether banking norms obligate the seller to reimburse the financier, whether refunds recorded by credit/debit note are deductible business expenses for the seller, and whether sales tax/VAT on refunded amounts is adjustable if corrected within six months. The advisor responded that resolution depends on whether a formal recovery action exists and on detailed facts to determine deductibility under tax law. en-us Mon, 22 Aug 2011 08:48:06 +0530 Thu, 23 Jan 2025 15:58:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3299 A supplier invoiced capital goods at an inflated price financed by a financial institution; the purchaser sought refund of the excess. The legal questions are whether banking norms obligate the seller to reimburse the financier, whether refunds recorded by credit/debit note are deductible business expenses for the seller, and whether sales tax/VAT on refunded amounts is adjustable if corrected within six months. The advisor responded that resolution depends on whether a formal recovery action exists and on detailed facts to determine deductibility under tax law. Discussion-Forum Income Tax Mon, 22 Aug 2011 08:48:06 +0530 https://www.taxtmi.com/forum/issue?id=3299