CAF-2 · Chapter 18 · Question 9 of 15
Under the Sales Tax Rules for Debit and Credit Notes, what is the maximum standard time limit for issuing a debit or credit note to adjust the output or input tax?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Within 180 days of the relevant supply (extendable by another 180 days by the Collector).
Explanation
The adjustments which lead to reduction in output tax or increase in input tax can only be made if the corresponding Debit Note or Credit Note is issued within 180 days of the relevant supply, provided the Collector may extend it by a further 180 days.
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