Regarding liability of taxation in Online purchase and sale of Gaming coin
This query is : Resolved
30 July 2024
Online business of gaming coin purchase & sale of Rs. 7 crore in off market and having commission income from such sale of coins.
Whether is it legal or illegal?
what is the GST liability on such sale of Gaming coin ?
Is there any income tax liability of Audit under section 44AB ?
Please give suggestion of above query.
Whether is it legal or illegal?
what is the GST liability on such sale of Gaming coin ?
Is there any income tax liability of Audit under section 44AB ?
Please give suggestion of above query.
30 July 2024
The online purchase and sale of gaming coins is generally legal, provided it does not contravene local laws regarding online gaming and financial transactions.
GST Liability: Sale of gaming coins attracts GST; typically 18%. With a turnover of Rs. 7 crore, GST registration is mandatory.
Income Tax Liability: Commission income from such sales is considered business income and is taxable.
Audit Requirement: Under Section 44AB of the Income Tax Act, a tax audit is mandatory since the turnover exceeds Rs. 1 crore.
Suggestion: Ensure compliance with GST registration, income tax reporting, and audit requirements. Consult a tax professional for accurate classification and compliance.
GST Liability: Sale of gaming coins attracts GST; typically 18%. With a turnover of Rs. 7 crore, GST registration is mandatory.
Income Tax Liability: Commission income from such sales is considered business income and is taxable.
Audit Requirement: Under Section 44AB of the Income Tax Act, a tax audit is mandatory since the turnover exceeds Rs. 1 crore.
Suggestion: Ensure compliance with GST registration, income tax reporting, and audit requirements. Consult a tax professional for accurate classification and compliance.
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
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- TDS 194R on GST effected
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
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
