In case of whole sale books suppliers in Jan to Mar months they have huge supplies but in the month aug sep n Oct there is only sales return. in R1 we issue credit note n our liability is negative. But how to reverse the tax liability in 3b on which tax has been already paid. can we show negative figure in 3b n reduce subsequent months liability or reclaim itc which was utilized for payment of such tax.
please suggest how to deal with this situation.
Thanks in advance 🙏
reduce tax liability to the extent of sales return (credit note) in subsequent months 3B. Not to be reclaimed ITC already set off
CAclubindia
