(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) Notwithstanding any thing contained in this rule, any credit note issued to a purchasing dealer against any sales, for any tax period(s) or month(s); on account of any incentive or any price adjustment annually or by way of free supply of goods or by any other means: except for any sales return; the same shall be treated to have been included in the sale price of such purchasing dealer, for the respective tax period(s) or month(s); and the tax shall be payable on such sale price, including the interest payable on the same.

(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, the difference between those two amounts and the tax charged that relates to that difference;

(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, the difference between those two amounts and the tax charged that relates to that difference;

(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.