Section 34. Credit and debit notes.-
(1) 1[Where one or more tax invoices have] 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 2[one or more credit notes for supplies made
in a financial year] containing such particulars as may be prescribed.
(2) Any registered person who issues a credit note in
relation to a supply of goods or services or both shall declare the details of
such credit note in the return for the month during which such credit note has
been issued but not later than 3[the thirtieth day of November] following the
end of the financial year in which such supply was made, or the date of
furnishing of the relevant annual return, whichever is earlier, and the tax
liability shall be adjusted in such manner as may be prescribed:
Provided that no reduction in output tax liability of
the supplier shall be permitted, if the incidence of tax and interest on such
supply has been passed on to any other person.
(3) 4[Where one or more tax invoices have] 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 5[one or more debit
notes for supplies made in a financial year] containing such particulars as may
be prescribed.
(4) Any registered person who issues a debit note in
relation to a supply of goods or services or both shall declare the details of
such debit note in the return for the month during which such debit note has
been issued and the tax liability shall be adjusted in such manner as may be
prescribed.
Explanation.-For the purposes of this Act, the
expression "debit note" shall include a supplementary invoice.
