20 April 2009
Dear experts, Please and anybody guide below mentioned issue: While purchasing the materials, the CST rate was @3%(Interstate purchases). Now they have raised a debit note (in March,09) as they didn't supplied those invoiced materials. Now CST rate is 2%. Please clarify whether debit note should raised for 2%or 3%. (My confusion is invoice raised for 3% but debit note raised for 2%. Is this correct)
20 April 2009
No, this is not correct, you had made payment to the party @ 3%, this was your cost, CST on purchase cannot be claimed as set off. Now since the supplier has not delivered the goods, you have to raise the debit note of Amt considering CST rate as 3%
CAclubindia
