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Regards debit or credit note

kundan singh (99 Points)

03 January 2019

I sold good to a party.but the party deduct some money due to the bad quality of good. for this what can I do.

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7 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 03 January 2019

Claim the difference amount as discount since even if you raise debit note party is not going to pay

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Akash Agrawal (47 Points)
Replied 03 January 2019

I think claiming discount will not be rational but can be claimed if it's regular in practice of the trade. Otherwise raising a debit note is a perfect way.

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 03 January 2019

But as clearly mentioned in query party has deducted amount because of bad quality it means it will not pay the amount even if debit note is been raised

Akash Agrawal (47 Points)
Replied 03 January 2019

Yes absolutely party will not give any money to the vendor and the reason being poor quality and not in the nature of any cash discount or trade discount. That's why I think it will be more appropriate to raise debit note. It is also according to trade practices.