What means with “sufficient efforts” for claiming Bad Debt Relief?
I email to custom, I ask if only send the letter for demand and phone calls, is it enough, this is the reply:
“In our opinion, issuing letter for demanding the debt and by phone calls is few sufficient efforts.
Registered person should have records pertaining the bad debt claim, such as call logs, letter of demanding debt, sales listing summaries, and other related transaction records. ”
sales listing summaries? and other related transaction records? Is it related to “effort”?
Not only that you have mentioned.
Under Section 58 of the GSTA provides the requirement and conditions for a taxable person to be eligible to claim a bad debt relief.
A taxable person is entitled to a relief for bad debt on the whole or any part of the tax paid by him in respect of a taxable supply if:-
(a) he has not received any payment in respect of the taxable supply from the debtor six months from the date of supply;
(b) the debtor has become insolvent before the period of six months has elapsed; and
(c) sufficient efforts have been made by him to recover the debt.
(d) the supply is made by a GST registered person to another GST registered person.
(e) the supply is a supply of goods, the ownership of goods has been transferred to the debtor; and
(f) prepares, keeps and updates full records of list of debtors involved in the claim under section 58 Goods And Services Tax Act 2014 including records as prescribed in regulation 74, Goods And Services Tax Regulations 2014.