BSP Agency Debit/Credit Memo Policy

Payments Payments

Objective: The purpose of this document is to list the key audit areas along with the timelines for normal as well as exceptional instances.

Source

Reasons

Time Limit

Sales Audit

Fares, SSRs, TFCs(Taxes, Fees

and Charges)

Within 6 month from the date

of sale

Refund and Exchange

Audit

Fares, SSRs, TFCs(Taxes, Fees

and Charges)

Within 6 month from the date

of refund/exchanged

Refund Processing

Fares, SSRs, TFCs(Taxes, Fees and Charges) commission

Recalls

Within 12 month from the date of refund

Sales Accounting

Fares, SSRs, TFCs(Taxes, Fees and Charges) Credit Card

Chargebacks

Within 12 month from the date of final travel date

For routine sales and refund audits, the 6-month time limit applies only to normal errors. The following will follow exceptional path:

  1. If IndiGo suspects abuse or fraud, an in-depth audit of this agency would follow and ADM would be raised post confirmation of the in-depth audit findings.
  2. Credit card charge-backs may be debited beyond the time limit, if the card process requires or invokes longer time frames, allowing the cardholder extended time frame to dispute/reject the credit transaction.
  3. Under-collection of statutory taxes and airport levies and missing information on tax exempted tickets will be treated as an exception. IndiGo is subject to audit assessment by tax authorities, for a period of 7 years from the end of the financial year.
  4. A ticketing/refund error fee may apply for failure to ticket/refund, according to the IndiGo terms and conditions.
  5. Credit Memo requests for unclaimed refunds are:
    1. Permitted: If within 6 months from the date of ticket issuance a nominal service fees of INR500 inclusive of statutory taxes or equivalent amount in booking currency will apply
    2. Denied: If greater than 6 months from the date of ticket issuance.

Minimum Value

The minimum value of a Debit/Credit memo varies according to the situation:

  1. Sales Audit: Less than Rs50 or equivalent amount in booking currency will neither be debited nor credited.
  2. Refund/Exchange Audit: Under collection of supplementary fee such as a change fee/cancellation of less than Rs50 or equivalent amount in booking currency will neither will be debited nor credited.
  3. For taxes, including the lack of proper documentation for tax exempt tickets, surcharges or fees, there is no minimum value.

Debit Note Correspondence

  1. Correspondence should be responded to, within 7 working days of receipt through BSP link.
  2. For a valid dispute, if it is necessary to reverse or reduce a debit memo, after the BSP link latency period, INR 2000, inclusive of statutory taxes or equivalent amount of booking currency will be deducted from the credit memo due to the agency, as late dispute charges.
  3. Disputes on debit memos that have already been paid for will not be accepted, beyond one (1) years from the original debit memo issue date.

The above standards apply to fares and its audit processes. In the event of consistent abuse, suspected fraud, interline billings or any other extraordinary circumstance that may require an in-depth audit review, the above timelines would no longer apply.

This document summarizes our policy for the key audit areas but should not be construed as complete and final. The document would be updated from time to time to capture various instances encountered during the BSP settlement process.

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