Q. 515 Sir, Can a C.A under composition scheme issuing bill of supplies for his services , issue credit notes towards fee reduction done by the client ?

Ans. Yes, sir you can issue a credit note. And in return self- assessed tax liability to be calculated on net of advances, credit and debit notes and any other adjustment due to amendments etc.

Q. 514 Machinery installed in a restaurant and appearing in the balance sheet whether taxable under GST after closure of the business ? Please note that no ITC was ever claimed on the purchase of such machinery and GST @5% was being charged on the sale of food. Furthermore, what would be it’s taxability if the machinery is sold after closure of restaurant business ?

Ans. Apparently, GST will be levied on the disposal of the machinery. Further, it depends upon how and whom the sale has been done.

Q. 513 Sir, A chartered Accountant under Composition scheme issued Bill of Supply for 10000 to a client . But client gives only 8000 in full settlement . What amount to be reported in CMP08 and tax paid ?

Ans. You are required to raise a credit note and discharge tax on 8000 only.