CSC centre individual bank transaction limit

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies that large bank transactions for a CSC centre, such as money transfers and withdrawals, do not count as taxable turnover for GST or Income Tax. Only the service fees earned (e.g., Rs 10 per Rs 1000 transferred) are considered business income and are subject to tax. While bank statements will show the total money movement, only the net service charge should be declared for ITR and GST purposes.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
Follow

05 February 2025 Sir one of csc centre(individual) deals in money transfer and get cash payment from customers and transfer from his current account to others. And withdrawl money from aasdhar also. IRCTC ticket booking. Now his transaction in account exceed 22 lac in previous year and he earned Rs 328000
should he need to take gst? if yes than his liability becomes more than earning. For every Rs 1000
transfer charged Rs 10 as service charge
how to deal account for ITR and gst?
please suggest

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

05 February 2025 your turnover is only the service fee. Not the gross amount you are facilitating.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
Follow

06 February 2025 ok Sir
but what to do with bank transactions?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

12 August 2025 The large volume of money moving through the bank account (e.g., Rs 22 lakh) does not count as turnover for GST or Income Tax.

It’s just pass-through money (clients’ money), not income.

For Income Tax and ITR purposes, only the service income (Rs 10 per 1000) is taxable as business income.

Bank transactions can be shown in ITR as cash flow, but they don’t form part of taxable income.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now