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debit note and credit note

STARK (Student) (162 Points)

05 April 2018

Who will be the issue debit note and credit note

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 05 April 2018

Supplier will issue debit notw or credit note.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 05 April 2018

No more specified person issued the above said Credit Note and Debit Note... These are issued based on the transaction...

Sales Return (Credit Note) :
A Supplier (seller) will be receiving his supplies goods from Customers in any problems then He is received the goods in a document it's name of Sales Return or Credit Note. Also credit note prepared some of other credits....
Purchase Return (Debit Note) :
A Buyer will be returned the goods to his Supplier for any problems he can issued a document it's name of Purchase Return or Debit Note. Also Debit Note Prepared some of the Other Debits...

Note :
Both transactions not only as per above way some times it will preparable buy opposite party's for any other manner...

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 05 April 2018

In GST both Debit note & credit note to be issued by suuplier.

When goods supplied are returned or when there is a revision in the invoice value due to goods (or services) not being up to the mark or extra goods being issued a Debit Note or Credit Note is issued by the supplier and receiver of goods and services.

A debit note or a Credit Note can be issued in 2 situations –

When the amount payable by buyer to seller decreases –There can be a change in the value of goods after the goods are delivered and invoice is issued by the seller. This can be due to a return of goods or due to the bad quality of the goods delivered, etc.In this case, the value of goods decreases due to which a Debit Note is issued by the purchaser to the seller. The Debit Note provides details of the amount of money debited from the sellers’ account and also states the reason for the same.The reason behind this – In the purchaser’s books of account the seller will have a credit balance. When a debit note is issued the credit balance of the Sellers account decreases, thus reducing the seller’s balance. It means that that lesser amount is required to be paid by the buyer to the seller to settle his liability. Thus debit note reduces the liability for the buyer.The seller issues a Credit Note as a response or acknowledgment to the Debit Note
When the amount payable by buyer to seller increases-When the value of invoice increases due to extra goods being delivered or the goods already delivered have been charged at an incorrect value a Debit Note is required to be issued.The Debit Note, in this case, is issued by the seller to the buyer. And the buyer as an acknowledgment to the receipt of Debit Note issues a Credit Note.The reason behind this – In the seller’s books of account the buyer will have a debit balance. When a debit note is issued the debit balance of the buyer’s account increases. It means that more amount is required to be paid by the buyer to the seller to settle his liability. Thus, credit note increases the liability for the buyer.

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