Credit note
Suchita Shivaji More (Accountant) (168 Points)
16 July 2016Suchita Shivaji More (Accountant) (168 Points)
16 July 2016
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 16 July 2016
Credit note issued on basic amount of invoice only..
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 16 July 2016
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 16 July 2016
No need of Add Tax in Credit note.. Only Give Credit note to Basic Amount .. Because Customer already taken credit on VAT Amount which we wull charges in our Tax Invoices.. SO no need to give double credit for VAT Amount..
Suppose our Basic Amount is 1000 and VAT 5% = 50.. so our Tax Invoice is 1000+50 = 1050
Now Customer want the 10% Credit note for our Invocies...
We will give 10% Credit note on Basic amount that means = 1000 @ 10% = 100
Hope this is clear...
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 16 July 2016
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 16 July 2016
In this quarries they give ctedit note to customer... Why are not give again credit to Customer...
In our invoices we chargs VAT Rs. 50 from our customer than why we given again credit for VAT..
No need of given credit note on VAT and EXCISE again and again..
Hope you agree the same
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 16 July 2016
Credit note is raised for accounting sales return. Entry would be: Sales/ED/VAT Dr To Customer A/c. How is VAT credited twice here?
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 16 July 2016
We can issue a credit note and it should be basic amount.. if we added vat and excise than more credit goes to customer..
Please read carefully... Why we give excess Credit note to Customer ????
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 16 July 2016
Let me ask you a practical question. Suppose I buy a TV for Rs.50k (say 45k basic price + 5k VAT) and make full payment in advance. After I buy, I find that it is defective and hence return the TV to the vendor. How much money should I get back: 50k or 45k?
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