06-10-2009, 04:56 AM
The following points are worth mentioning with regards to the said question as mentioned under Rule -19 to Rule 23 of the sales tax rules 2006,
<b>1. </b> Goods should be returned within 180 days of the supply, however, at supplier's request , collector may extend the period for further 180 days.
<b>2.</b> Buyer shall return the goods forthwith debit notes at the reciprocal issuance of credit notes by supllier.
<b>3.</b>Buyer shall not be entitled to input tax with regards to these goods, where buyer has already availed the credit on these goods then the same shall be adjusted in the tax period , when goods are returned. i.e. it shall become payable forthwith output tax on other goods.
<b>4.</b> Supllier shall reduce the amount of output tax in the same period when the goods are returned to the supplier i.e. supplier may claim this amount as input tax thus reducing the liablity.
Best Regards,
<b>1. </b> Goods should be returned within 180 days of the supply, however, at supplier's request , collector may extend the period for further 180 days.
<b>2.</b> Buyer shall return the goods forthwith debit notes at the reciprocal issuance of credit notes by supllier.
<b>3.</b>Buyer shall not be entitled to input tax with regards to these goods, where buyer has already availed the credit on these goods then the same shall be adjusted in the tax period , when goods are returned. i.e. it shall become payable forthwith output tax on other goods.
<b>4.</b> Supllier shall reduce the amount of output tax in the same period when the goods are returned to the supplier i.e. supplier may claim this amount as input tax thus reducing the liablity.
Best Regards,
