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Tax implications of jio phone's deposit

13 August 2017

How would be the tax computed ( Income tax as well as GST) for the jio phone deposit that the company would be accepting.

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3 Replies

rama krishnan (12234 Points)
Replied 13 August 2017

it's refundable deposit. hence no tax implication in respect of income tax in my opinion

RAJA P M ("Do the Right Thing...!!!") (127167 Points)
Replied 13 August 2017

Yes. No more tax implications in income tax and GST.....

Pawan (CA Final) (572 Points)
Replied 14 August 2017

According to me both income tax and GST is applicable.
Here the company is selling the phone at a price and all the risk and reward is transferred by the company. The company issues an Invoice for the same. It forms part of Turnover. The company further will buy back the phone after the completion of the specified period as per the terms of sale. At the time of buyback, the expenses shall be debited to p&l account.

Further in terms of GST, the company collects GST for sale of phones and then at the time of buyback, it is pays tax under RCM 9(3) and claims ITC in subsequent month.

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