Debt and credit note
(1) Where goods are returned to the registered person or, for good and valid reason the registered person decides for business reasons, to reduce the value of a supply after the issue of a tax invoice, a credit note shall be issued for the amount of the reduction:(TaxLAA-No1-2020 wef-25April2020)-(Proviso)
Provided that a credit note may be issued only within six
months after the issue of the relevant tax invoice.
(3) A registered person who receives a credit note for the supply in respect of which he has claimed deductible input tax, shall reduce the amount of deductible input tax in the month in which the credit note is received, by the amount of tax credited.
(4) Where a registered person has issued a tax invoice in respect of a taxable supply and subsequently makes a further charge in respect of that supply, or any transaction associated with that supply, the person shall, in respect of the further charge being made, issue a debit note, and shall show on it the details of the tax invoice issued at the time of the original supply.
(5) A registered person who receives a debit note issued in compliance with subsection (4) may, if the supply is eligible therefor and in so far as it has not previously been claimed, claim as deductible input tax such further amount of tax that is being charged, in the month in which the further charge was made, or in the next subsequent month.
Finance Act, 2018Effective 1st July 2018
(6)A credit or debit note issued under this section shall be
serially numbered and shall include details of the name,
address and personal identification number of the person to
whom it is issued and sufficient details to identify the tax
invoice on which the supply was made and the tax that was
originally charged.
Provided that a credit note may be issued:
- (a) only within six months after the issue of the relevant tax invoice; or
- (b) where there is a commercial dispute in court with regard to the price payable, within thirty days after the determination of the matter.
(3) A registered person who receives a credit note for the supply in respect of which he has claimed deductible input tax, shall reduce the amount of deductible input tax in the month in which the credit note is received, by the amount of tax credited.
(4) Where a registered person has issued a tax invoice in respect of a taxable supply and subsequently makes a further charge in respect of that supply, or any transaction associated with that supply, the person shall, in respect of the further charge being made, issue a debit note, and shall show on it the details of the tax invoice issued at the time of the original supply.
(5) A registered person who receives a debit note issued in compliance with subsection (4) may, if the supply is eligible therefor and in so far as it has not previously been claimed, claim as deductible input tax such further amount of tax that is being charged, in the month in which the further charge was made, or in the next subsequent month.
Finance Act, 2018Effective 1st July 2018
(6)
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