Question : If we want to utilize that ITC (GST) then such subvention charges should be debited. Now what entry we should pass ???
By Subvention charges Dr
By CGST Dr
By SGST Dr
Since neither we have paid any money nor we liable to pay to Bajaj Fianance.
If I am getting amount lesser than Rs.100 from customer(Bajaj Finance), then your view would have been right.
Customer a/c dr. 100
To Sales a/c 100
Bank a/c dr 100
To Customer a/c 100
Since I am getting entire Rs.100, its not right to credit customer account as per your view since it will results in credit balance to customer's a/c.
IN the whole scenerio, Customer is main. which is debited at the time of sale, later money is given by another, so, Bajaj will be crediting and customer will be debiting. Now subvention charges are the expenses which debited to sales account since already customer account has been knock off.