How does a purchasing dealer return rejected goods to the seller? What happens in case such a dealer is not registered under the State VAT Act?
If the buying dealer is registered under the VAT Act, he shall, on returning the goods, issue to the seller a duly signed delivery cum debit note (DDN). If the buyer is not a registered dealer under some other State and did not issue the DDN in respect of goods returned by him, the selling dealer may issue a credit note in respect of goods so returned to him and deduct the value of such goods from his gross turnover. The selling dealer, in the above case, may be asked by the authority to furnish evidence of the return of goods, credit of the amount of such rejection of goods to the account of the purchaser and payment thereof to him.
