Both are Accounting terms used in business transactions. Let's discuss the Debit note First. A debit note is issued from a buyer to a seller. Issued when the buyer receives incorrect or damaged goods or services. issued when the buyer cancels the purchase orders. Simply the debit note is issued at tRead more
Both are Accounting terms used in business transactions.
Let’s discuss the Debit note First.
A debit note is issued from a buyer to a seller.
Issued when the buyer receives incorrect or damaged goods or services.
issued when the buyer cancels the purchase orders.
Simply the debit note is issued at the time of Purchases Return
When the invoice is overbilled or billed with an Incorrect amount
And for the above reasons, the buyer requests to return funds from the seller.
A debit note is issued before a credit note.
It works as purchases return.
Example of debit note:
Ram is the purchaser, and Shyam the seller or supplier. Now see the sequence of events leading to the issuance of a debit note.
Ram purchases goods worth Rs. 1000 from Shyam.
Ram receives the goods and the final invoice but receives some damaged goods.
Ram inform Shyam about the damaged goods and ask for returning the goods as is.
Ram raises a debit note against Shyam, mentioning the original purchase, the value of the damaged goods, and the reason behind the return.
On receipt of the debit note, Shyam issues an appropriate credit note.
As per section 34(3) of the Goods and Services Tax Act, “Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed”.
Now, Lets understand the Credit Note
A Credit note is issued from a seller to buyer.
Issued when the Seller buyer receives incorrect or damaged goods or services.
issued when the buyer cancels the purchase orders and the amount has already been received, buyer.
Simply the Credit note is issued at the time of Sales Return
When the invoice is incorrect.
When some discount has to be given.
When buyer denied paying some amount of invoice.
And for the above reasons, the buyer requests to return funds from the seller.
Sec 34 of GST Act defined the credit note as below.
“Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.”
Leave encashment at the time of service is fully taxable. Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted. But for other employees, an exemption is provided u/s 10(10AA)(ii) as per tRead more
Leave encashment at the time of service is fully taxable.
Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted.
But for other employees, an exemption is provided u/s 10(10AA)(ii) as per the below method:
Leave encashment received
200000
Average salary* of last 10 months
180000
Salary per day * Balance of earned leave for service span (Maximum 30 days leave per year for every year of completed service is allowed)
250000
Amount notified by the Government Rs 3,00,000 aggregate.
3,00,000
Leave encashment Exemption(Lower of above)
180000
*Salary means basic salary, dearness allowance, and commission based on a fixed percentage of turnover secured by the employee.
So the taxable amount is Rs 2,00,000-1,80,000=20,000/-
Advance Salary and bonus become taxable in the year of actual receipt on the basis of the tax rates applicable in the year of receipt. However, Assess can claim relief under section 89(1) of the Income Tax Act.
Advance Salary and bonus become taxable in the year of actual receipt on the basis of the tax rates applicable in the year of receipt. However, Assess can claim relief under section 89(1) of the Income Tax Act.
What are the differences between debit note and credit note?
Both are Accounting terms used in business transactions. Let's discuss the Debit note First. A debit note is issued from a buyer to a seller. Issued when the buyer receives incorrect or damaged goods or services. issued when the buyer cancels the purchase orders. Simply the debit note is issued at tRead more
Both are Accounting terms used in business transactions.
Let’s discuss the Debit note First.
Example of debit note:
Ram is the purchaser, and Shyam the seller or supplier. Now see the sequence of events leading to the issuance of a debit note.
As per section 34(3) of the Goods and Services Tax Act, “Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed”.
Now, Lets understand the Credit Note
Sec 34 of GST Act defined the credit note as below.
“Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.”
See lessI got encashed my balance Leaves at the time of retirement, would it be taxable?
Leave encashment at the time of service is fully taxable. Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted. But for other employees, an exemption is provided u/s 10(10AA)(ii) as per tRead more
Leave encashment at the time of service is fully taxable.
Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted.
But for other employees, an exemption is provided u/s 10(10AA)(ii) as per the below method:
*Salary means basic salary, dearness allowance, and commission based on a fixed percentage of turnover secured by the employee.
So the taxable amount is Rs 2,00,000-1,80,000=20,000/-
See lessHow the advance salary is taxable?
Advance Salary and bonus become taxable in the year of actual receipt on the basis of the tax rates applicable in the year of receipt. However, Assess can claim relief under section 89(1) of the Income Tax Act.
Advance Salary and bonus become taxable in the year of actual receipt on the basis of the tax rates applicable in the year of receipt. However, Assess can claim relief under section 89(1) of the Income Tax Act.
See less