https://www.taxtmi.com/circulars?id=53004 Purchasing dealers must reverse Input Tax Credit in the tax period when credit/debit notes are issued for trade discounts, returns/rejections, or rate/quantity variations arising from sales within the territory. Credit notes relating to cash discounts, reimbursements, rent/lease or other non supply considerations are not eligible for seller output tax adjustment and need not be reported in the return annexures; buyers therefore need not reverse ITC for those items. Sellers may adjust output tax for eligible post sale trade discounts under the output adjustment mechanism, but buyer reversal is independent and may be examined on scrutiny. en-us Mon, 08 Sep 2014 00:00:00 +0530 Mon, 08 Sep 2014 15:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=53004 Purchasing dealers must reverse Input Tax Credit in the tax period when credit/debit notes are issued for trade discounts, returns/rejections, or rate/quantity variations arising from sales within the territory. Credit notes relating to cash discounts, reimbursements, rent/lease or other non supply considerations are not eligible for seller output tax adjustment and need not be reported in the return annexures; buyers therefore need not reverse ITC for those items. Sellers may adjust output tax for eligible post sale trade discounts under the output adjustment mechanism, but buyer reversal is independent and may be examined on scrutiny. Circulars VAT - Delhi Mon, 08 Sep 2014 00:00:00 +0530 https://www.taxtmi.com/circulars?id=53004