Giving cash on credit card
This query is : Open
03 June 2014
I am a grocery shop owner people come at my shop and ask to swap credit card and give them cash. And I charge them say 6% for doing this.
Foe example one swap credit card for rs.5000 i pay him rs.4700 and i get 300 rs as my income.
My queries are:
1) Is this is legal??
2) What tax I need to pay? Need to pay on swapped amount(5000) or the amount which I earn(300)?
Please let me know ASAP.
Thanks in advance for your valuable suggestions.
Foe example one swap credit card for rs.5000 i pay him rs.4700 and i get 300 rs as my income.
My queries are:
1) Is this is legal??
2) What tax I need to pay? Need to pay on swapped amount(5000) or the amount which I earn(300)?
Please let me know ASAP.
Thanks in advance for your valuable suggestions.
03 June 2014
you are getting commision for the same and u must register for service tax in case when ur gross reciepts in total exceeds rs 10,00,000 but get reg when it exceeds rs 9 lakhs.
03 June 2014
well:
1. with regards to legality, its a bit dicey thing. you are converting white into black though on a very micro scale.
2. with regards to taxation (income), it depends on whether you have the trail for the cash paid to these people. If there is no trail as an evidence, your tax shall be on the whole of the swiped amount.
1. with regards to legality, its a bit dicey thing. you are converting white into black though on a very micro scale.
2. with regards to taxation (income), it depends on whether you have the trail for the cash paid to these people. If there is no trail as an evidence, your tax shall be on the whole of the swiped amount.
03 June 2014
Thanks Tushar n Nikhil.
Nikhil 1) did u mean if I have say transaction of 10,000,000 in a year then is it illegal?
2. How can I register for service tax. As said by Nikhil the tax will be paid on the whole. Nikhil what type of evidence will work. Can you please elaborate little bit on this by example?
Please help me how should I go so that I have to just pay service tax n it should be totally legal.
Nikhil 1) did u mean if I have say transaction of 10,000,000 in a year then is it illegal?
2. How can I register for service tax. As said by Nikhil the tax will be paid on the whole. Nikhil what type of evidence will work. Can you please elaborate little bit on this by example?
Please help me how should I go so that I have to just pay service tax n it should be totally legal.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Rental income of jointly held property
- FEMA regulation Act. for inward remitance
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
