(1) Where a tax invoice has been issued and the amount shown as tax charged in that tax invoice exceeds the tax payable in respect of the sale, the VAT dealer making the sale shall issue to the buyer a credit note; containing the particulars specified in sub-rule (4) of this rule.

(2) Where the tax invoice has been issued in respect of any sale, and the tax charged in the Tax Invoice in respect of that sale is found to be less than the amount of tax payable under this Act, the VAT dealer making the sale, shall issue to the buyer a debit note; containing the particulars specified in sub-rule (5) of this rule.

(3) (a) Credit and debit notes in respect of sales or purchase return; subject to clause (b) of this sub-rule, shall be issued only when the goods have been returned within a period of six months from the date of original sale or purchase.

(b) Credit and debit notes in respect of any annual discounts and any price adjustments shall be issued, as and when the accounts are settled between the seller and the buyer;

provided such settlement is made within the three months from the end of the year, and they are supported by proper documentary evidence.

(c) (i) Notwithstanding anything contained in this rule, any credit or debit note is required to be issued by a selling dealer to a purchasing dealer or by a purchasing dealer to a selling dealer against any prior sales or purchase, such shall be issued exclusively only on Sale Price.

(ii) Such dealers shall not alter the tax component as charged in the original tax invoices issued to a purchasing dealer by a selling dealer at the time of such sales or purchases, except in the circumstances the goods returned."

(iii) No credit or debit note shall be issued on such tax invoices which are inclusive of taxes.

(4) The Credit Notes shall contain: -

(a) The words "credit note" in a prominent place.

(b) The commercial name, address, place of business and the VAT taxpayer identification number and of the VAT dealer making the sale.

(c) The commercial name, address, place of business and the VAT tax payer identification number of the receiving VAT dealer.

(d) The date on which the credit note was issued;

(e) The rate of tax;

(f) The sale price shown on the tax invoice, the revised amount of the sale price;

(g) A brief explanation of the circumstances giving rise to the issuing of the credit note; and

(h) Information sufficient to identify the taxable sale to which the credit note relates.

(i) Proof of transport of the goods in respect of sales returns.

(5) The Debit Notes shall contain :-

(a) The words 'debit note' in a prominent place

(b) The commercial name, address, place of business and the tax identification number of the VAT dealer making the sale;

(c) The commercial name, address, place of business and the taxpayer identification number of the purchasing VAT dealer.

(d) The date on which the debit note was issued;

(e) The rate of tax;

(f) The sale price shown on the tax invoice, the revised amount of the sale price;

(g) A brief explanation of the circumstances giving rise to the issuing of the debit note;

(h) Information sufficient to identify the taxable sale to which the debit note relates.

(i) Proof of transport of the goods in respect of sales returns.