Sales tax - Credit Note

4 important questions on Sales tax - Credit Note

What happens when a registered manufacturer submits a sales tax return but the sales amount is reduced?

The sales amount reduction due to wrong quantity, product, defective quality, or discount results in an overpayment of sales tax. This is referred to as an ST deduction.

When is a sales ded given?


Sales dudeduction given once credit note is issued.

How is an unutilised sales tax deduction handled?

If the deduction exceeds the sales tax payable, the excess is carried forward to the next taxable period and subsequent periods until fully deducted.
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How long must records like invoices and credit notes be kept?

Records such as invoices, credit notes, and debit notes must be kept for 7 years from the latest date to which the record relates.

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