Credit note or cancel invoice

This query is : Resolved

BHARGAV (Querist)
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17 March 2017 Dear Sir / Madam ,

Mr. A (Seller) Sold his Goods To Mr. B ( Buyer) on 01.12.2017 , But Due To Some Reason That Goods is Not Accepted By Mr. B and Again That Goods Is Received By Mr. A on 01.03.2017 With Original Invoice (Not With Debit Note ).

My Question Is In Above Circumstances , What Can Mr.A. Do ? Can Mr. A Cancel Invoice or Clear Invoice By Creating Credit Note.

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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17 March 2017 As you have mentioned that goods are received back along with original invoice (and not with Debit note), that means sales has not taken place. In this case invoice has to be cancelled and credit note cannot be issued because B is not our debtor.