a) Interest payable to partners shall be in accordance with the terms of the partnership deed, however, it shall not exceed 12% per annum. b) Remuneration payable to partners shall be in accordance with the terms of the partnership deed, however, it shall not exceed the following limit: On first Rs.Read more
- a) Interest payable to partners shall be in accordance with the terms of the partnership deed, however, it shall not exceed 12% per annum.
- b) Remuneration payable to partners shall be in accordance with the terms of the partnership deed, however, it shall not exceed the following limit:
- On first Rs. 3 Lakhs of book profit or in case of loss – Rs. 1,50,000 or 90% of book profit, whichever is more;
- On the balance of the book profit – 60% of book profit.
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.”