44 Credit and debit notes

Credit and debit notes.

44. (1) Where a tax invoice has been issued and the amount shown as tax charged in the tax invoice exceeds the tax chargeable under this Act in respect of that sale, the registered dealer, or a dealer who has made an application under sub-section (1) of section 24 within thirty days from the date of incurring liability to pay tax under the Act, making the sale shall provide the purchaser with a credit note and the purchaser shall provide such dealer making the sale, with a debit note containing such requisite particulars as may be prescribed.

(2) Where the tax invoice has been issued and the tax chargeable under this Act in respect of the sale exceeds the amount of tax charged in that tax invoice, the registered dealer, or a dealer who has made an application under sub-section (1) of section 24 within thirty days from the date of incurring liability to pay tax under the Act, making the sale shall provide the purchaser with a debit note and the purchaser shall provide such dealer making the sale, with a credit note containing such requisite particulars as may be prescribed.

(3) In case of goods returned or rejected by the purchaser, a credit note shall be issued by the dealer making the sale to the purchaser, and a debit note will be issued by the purchaser to the dealer making the sale, containing such requisite particulars as may be prescribed:

Provided that where the goods sold or purchased in a year is returned or rejected in a subsequent year, within a period of six months from the date of sale or purchase, the credit note issued by the seller of the debit note issued by the purchaser shall be adjusted with the turnover of sales or turnover of purchases, as the case may be, in the year in which such goods are returned or rejected.