Please Help: About Debit Note and Credit Note
Posted Date : 16-Aug-2011 , 11:18:15 pm | Posted By: Vikas
Category :
Accounts | Answers :
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Comments :
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when we can issue / take Debit note or credit note ?
Is there any restriction to raise this note ?, means industry wise restriction.
Case : i have seen in advertisement company that, after raising bill , some discount shall be allowed to customers, but as per Indian national printing society act, any advertisement company, who is the member of this society can not give discount to customer, so they are using debit note or credit note.
That is why i am asking to my senior, friends, please give some view on this |
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| Comments |
| Posted By : Rajat Bhatia |
31-Aug-2011, 12:56:48 |
| dear vikas, debit/credit notes & discounts are two different things. normally discounts are given on the spot in the bill, like trade discount for bulk quantity or cash discount for early payments etc. debit/credit notes are not issued to represent discounts. dr/cr notes are issued when there is some discripency in the bill in regard to actual supply of material or actual service rendered. for ex. the rate of goods in the bill was not the same as decided earlier or some goods mentioned in the bill have been rejected by the receiving party etc. then dr/cr notes are issued to confirm the other party that his account has been debited/credited with lesser amount etc. but there is no restriction for issuing dr/cr notes. |
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| Posted By : CA Rajnish |
17-Aug-2011, 12:48:33 |
| I think Vikas ji discount and debit/credit note are two different nature things,as if a party receives discount from any bill later on ,this is the nature of income/expenses while if credit/debit note issues then this will reduce/increase the other party account. Please consider this point also. |
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| Posted By : CA VIPIN GARG |
17-Aug-2011, 08:46:50 |
| My dear Vikas, there is no restrictions in any industry for issuing the debit/credit notes. What advertising company is doing in the above case is perfectly right and nobody can questioned on this matter to the advertising agency.
Hope you will find the answer you are looking for my dear....
Have a nice day and please feel free for any further clarification or any doubt .........
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