Debit And Credit Note

A debit note should be issued by a supplier in the following circumstances:

• The taxable value shown in the invoice is lesser than the taxable value of the supply.
• The tax charged in the invoice is less than the tax payable on the supply.

A credit note can be issued by a supplier only in the following circumstances:

• The taxable value shown in the invoice exceeds the taxable value of the supply.
• The tax charged in the invoice exceeds the tax payable on the supply.
• The goods supplied are returned by the recipient.
• The goods/services are found to be deficient.