Details mentioned in credit note in case of Sales Returns, Central Excise

[SANDESH SHINDE]

Dear Sir,

In case of Sales return if purchaser has availed credit and if purchaser has not availed credit then if we as a supplier has availed credit after returning back the goods to us on the basis of our own duplicate copy sent alongwith goods.Please explain what details will be mentioned by both debtor in case of debit note and us as a creditor in case of credit note in both the above mentioned cases.Please expalin, please give us any reference regarding this. thanks and regards.

Posts / Replies

[Bhavesh Chawada]

Dear Sandesh

Please try to understand the matter in simple manner

1).If purchaser taken credit he can send the material with their Excise Invoice mentioning "As such removal ur......CCR 2004)

2).If he not taken credit you can avail CENVAT on your Invoice

It is safer that you must take rejection reason in written from purchaser in both cases

[MUKUND THAKKAR]

in addition of above please note reason for rejection must be due to quality problem is advisable . and duration of rejection is not more than six month old incase your vendor sending back goods with our any genuine reasons.

[Naveed S]

Information required on a credit note

A credit note must show clearly:

• an identifying number e.g. a serial number;
• the date of issue;
• your name, address and GST registration number;
• your customer's name and address;
• the reason for the credit - for example, “returned goods”;
• a description sufficient to identify the goods and services for which credit is being allowed;
• the quantity and amount credited for each description;
• the total amount credited, excluding tax;
• the rate and amount of tax credited; and
• the total amount credited, including tax.

The number and date of the original tax invoice should also be shown on the credit note.

If debit notes are normally issued to suppliers from whom credit is due, the debit notes must show details similar to those required for credit notes.

If credit notes are subsequently received from the suppliers, they should be compared with the debit notes issued. Adjustment can only be made once and the debit and credit notes must not be used simultaneously as accounting documents.

Debit and Credit notes has no relevance with availment/non-availment of cenvat credit and hence no such reference required thereon.