Introduction
A supplier of goods or services or both is mandatorily
required to issue a tax invoice. However, during the course of trade or
commerce, after the invoice has been issued there could be situations like:
• The supplier has erroneously declared a value which is
less than the actual value of the goods or services or both provided.
• The supplier has erroneously declared a lower tax rate
than what is applicable for the kind of the goods or services or both supplied.
• The quantity received by the recipient is more than
what has been declared in the tax invoice.
• Any other similar reasons.
In order to regularize these kinds of situations the
supplier is allowed to issue what is called as debit note to the recipient. The
debit note also includes supplementary invoice.
Meaning
When 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 the prescribed
particulars.
Format
There is no prescribed format but debit note issued by a
supplier must contain the following particulars, namely:
(a) name, address and Goods and Services Tax
Identification Number of the supplier;
(b) nature of the document;
(c) a consecutive serial number not exceeding sixteen
characters, in one or multiple series, containing alphabets or numerals or
special
characters hyphen or dash and slash symbolised as “-” and “/” respectively, and
any combination thereof, unique for a financial year;
(d) date of issue;
(e) name, address and Goods and Services Tax
Identification Number or Unique Identity Number, if registered, of the
recipient;
(f) name and address of the recipient and the address of
delivery, along with the name of State and its code, if such recipient is
un-registered;
(g) serial number and date of the corresponding tax
invoice or, as the case may be, bill of supply;
(h) value of taxable supply of goods or services, rate of
tax and the amount of the tax debited to the recipient; and
(i) signature or digital signature of the supplier or
his authorized representative
Tax liability
The issuance of a debit note or a supplementary invoice
creates additional tax liability. The treatment of a debit note or a
supplementary invoice would be identical to the treatment of a tax invoice as
far as returns and payment are concerned.
Records
The records of the debit note or a supplementary invoice
have to be retained until the expiry of seventy two months from the due date of
furnishing of annual return for the year pertaining to such accounts and
records. Where such accounts and documents are maintained manually, it should
be kept at every related place of business mentioned in the certificate of
registration and shall be accessible at every related place of business where
such accounts and documents are maintained digitally.
Conclusion
The debit note or a supplementary invoice is therefore a
convenient and legal method by which the value of the goods or services in the
original tax invoice can be enhanced. The issuance of the debit note will
easily allow the supplier to pay his enhanced tax liability in his returns
without requiring him to undertake any other tedious process.
Circular No. /2017-Customs F.No.450/178/2015-CUS-
IV Subject: -
Know Your Customer (KYC) norms-regarding Kind reference
is invited to Board’s Circular Nos. 07/2015-Customs dated 12.02.2015 and
13/2016-Customs dated 26.04.2016 on the subject cited above.
2.
In line with the KYC norms stipulated by the Reserve
Bank of India, Board had decided that two documents, one for proof of identity
and other for proof of address are required for KYC verification. However, in
case of individuals, if any one document listed in the Board Circular No.
9/2010-Cus dated 08.04.2010 contains both proof of identity and proof of addresses,
the same would suffice for the purposes of KYC verification. Aadhaar card had
also been recognised as one of the document for individuals. Board had further
relaxed KYC norms for individual, in view of the problem being faced by
individuals who possess proof of identity in the form of prescribed document
but their address of present stay is not mentioned in the proof of identity.
Moreover, many a times, it is difficult for individuals to produce
present/current proof of address. For such cases, it was decided that proof of
identity collected by the representative of the authorized courier at the time
of delivery of such consignments to an individual consignee along with
recording of address of the place where such consignments would be delivered to
the consignee by the authorized courier companies, would suffice for KYC
verification [Circular No.
13/2016-Customs dated 26.04.2016 refers]. In order to further simplify and
clarify the procedure in this regard, Board has decided that in case of import
or export through courier by an individual, Aadhaar card or passport or PAN or
Driving License or Voter ID card shall suffice for KYC verification however
recording of address of place of delivery, as mentioned above, would continue.
Board
has also decided to simplify the norms for KYC verification in the light of
introduction of Goods & Services Tax (GST) and in view of the emphasis of
government on adoption of a unified identifier. Accordingly, in modification of
the earlier instructions, in the case of import or export through courier by a
firm, company, institution, registered under the GST laws, GSTIN shall suffice
as the document for the purpose of KYC verification. In cases where the firm,
company or institution is not registered under GST laws, Unique identification
Number (UIN) or PAN shall serve as the document for KYC verification.
