Excise duty on debit notes of rate difference
This query is : Resolved
05 January 2014
Respected Experts,
I have a doubt that whether the company has to collect and pay the Excise duty on the Debit notes of Rate difference.
And also the Excise duty on the Shortage of the goods received from the seller
And also on the Discount received from the seller.
I will be very much happy for the earlier reply.
I have a doubt that whether the company has to collect and pay the Excise duty on the Debit notes of Rate difference.
And also the Excise duty on the Shortage of the goods received from the seller
And also on the Discount received from the seller.
I will be very much happy for the earlier reply.
05 January 2014
If duty and amounts are short then you can issue the supplementary invoice to your client.
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06 January 2014
What happens if there is large amount of duty involved in it and what is the procedure.
Because my client will be getting discount from their customer in lumpsum(huge amount),
I want to know whether it is liable for the Excise duty or not.
Awaiting for you reply,
Thanking you Sir,
Because my client will be getting discount from their customer in lumpsum(huge amount),
I want to know whether it is liable for the Excise duty or not.
Awaiting for you reply,
Thanking you Sir,
06 January 2014
What happens if there is large amount of duty involved in it and what is the procedure.
Because my client will be getting discount from their customer in lumpsum(huge amount),
I want to know whether it is liable for the Excise duty or not.
Awaiting for you reply,
Thanking you Sir,
Because my client will be getting discount from their customer in lumpsum(huge amount),
I want to know whether it is liable for the Excise duty or not.
Awaiting for you reply,
Thanking you Sir,
21 July 2024
In the context of excise duty (which has been subsumed under GST since July 1, 2017), here’s how the scenarios you mentioned typically apply:
1. **Debit Notes for Rate Difference:**
- Excise duty (now GST) is generally payable on the transaction value of goods at the time of removal or deemed removal.
- If a debit note is issued for a rate difference, and it results in an increase in the value of the goods on which GST was initially paid, GST may be applicable on the additional value.
- Under GST, debit notes are treated as supplementary invoices and GST is applicable based on the value specified in the debit note.
2. **Shortage of Goods Received from Seller:**
- In case of shortage of goods received from the seller, if the shortage is accounted for and properly documented, it should not attract additional GST since GST is paid on the actual quantity of goods received and accounted for at the time of receipt.
3. **Discount Received from Seller:**
- Discounts received from the seller are generally adjusted against the invoice value and GST is applicable on the net value after discount.
- If the discount affects the transaction value of goods for which GST has already been paid, the adjustment should be made as per GST rules.
4. **Procedure for Large Amounts:**
- For large amounts involving GST, proper documentation, accounting, and compliance with GST regulations are crucial.
- Ensure that all adjustments (such as rate difference, shortage, or discount) are properly documented through credit notes or debit notes as per GST rules.
- If GST liability arises due to any adjustments, it should be paid along with appropriate interest (if applicable) and reflected correctly in GST returns.
**Important Note:**
- Excise duty is no longer applicable post-GST. All transactions involving goods are now governed by GST laws, which include provisions for credit notes, debit notes, discounts, and other adjustments.
- It’s advisable to consult with a GST expert or tax consultant to ensure compliance with GST regulations, especially for transactions involving significant amounts or complex adjustments.
For specific guidance tailored to your client’s situation and for handling large transactions involving GST implications, professional advice is recommended to ensure accurate compliance and reporting.
1. **Debit Notes for Rate Difference:**
- Excise duty (now GST) is generally payable on the transaction value of goods at the time of removal or deemed removal.
- If a debit note is issued for a rate difference, and it results in an increase in the value of the goods on which GST was initially paid, GST may be applicable on the additional value.
- Under GST, debit notes are treated as supplementary invoices and GST is applicable based on the value specified in the debit note.
2. **Shortage of Goods Received from Seller:**
- In case of shortage of goods received from the seller, if the shortage is accounted for and properly documented, it should not attract additional GST since GST is paid on the actual quantity of goods received and accounted for at the time of receipt.
3. **Discount Received from Seller:**
- Discounts received from the seller are generally adjusted against the invoice value and GST is applicable on the net value after discount.
- If the discount affects the transaction value of goods for which GST has already been paid, the adjustment should be made as per GST rules.
4. **Procedure for Large Amounts:**
- For large amounts involving GST, proper documentation, accounting, and compliance with GST regulations are crucial.
- Ensure that all adjustments (such as rate difference, shortage, or discount) are properly documented through credit notes or debit notes as per GST rules.
- If GST liability arises due to any adjustments, it should be paid along with appropriate interest (if applicable) and reflected correctly in GST returns.
**Important Note:**
- Excise duty is no longer applicable post-GST. All transactions involving goods are now governed by GST laws, which include provisions for credit notes, debit notes, discounts, and other adjustments.
- It’s advisable to consult with a GST expert or tax consultant to ensure compliance with GST regulations, especially for transactions involving significant amounts or complex adjustments.
For specific guidance tailored to your client’s situation and for handling large transactions involving GST implications, professional advice is recommended to ensure accurate compliance and reporting.
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