Payment to govt on behalf of client

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This query is : Resolved

Bhargav (Querist)

24 August 2011 Hello Sir,

I want to know the following things.

If client does not have online payment facility or if he has, but he is reluctant using the same, can CA make payment online on their behalf and then take cheque from them?

Like at the time of registration at Gujarat VAT, there will be no TIN/CST number, so we cant give any number. We have to give PAN Only.

I have also observed that for obtaining PAN/TAN online, the payment should be done from the Applicant's card/netbanking.

Please share your opinion.

If we make payment on behalf of client, can we keep their money in our account? Will it lead to misconduct for Practising CA?

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)

24 August 2011 Keeping money is not a problem, misappropriating it is mis conduct.

Also if you do not charge anything for the said transactions, then you are acting as the agent of the client so there will be no liability of service tax also.

So in nut shell you can do it.
We do it regularly.

Bhargav

Bhargav (Querist)

24 August 2011 Thank you sir

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