Purchase via Commission agents

151 views 2 replies
User Avatar

Consultant
28 Points Joined January 2009
1. My client is Mobile dealer and purchase mobile through e-commerce companies.
2.He make payment to e-commerce company via credit card of third person(i.e commission agents)
3.And after that he pays all the agents via bank NEFT/RTGS.

my questions are:
1.Is ITC available on this kind of transactions?
2.Is this transaction considered correct from a legal GST perspective ?
3.any section or judgement available for that?

kindly answer for my queries..
thank you
0 Reply Share Follow
On 23 December 2024 at 17:43 Report
Replies (2)
User Avatar

Master in Accounts & high court Advocate
9434 Points Joined December 2011

 ITC Availability Input Tax Credit (ITC) is available on goods transactions, including purchases from e-commerce companies, provided certain conditions are met.

 Since your client is a mobile dealer purchasing mobiles through e-commerce companies, ITC can be claimed if:

- The e-commerce company is a GST-registered supplier. - A valid tax invoice or debit note is obtained. - The goods are received, and payment is made within 180 days.

However, the payment made via a third person's credit card may raise concerns. It's essential to ensure that the payment is properly documented and linked to the invoice to avoid any potential issues with ITC claims.

Legality from a GST Perspective From a legal GST perspective, the transaction seems to be a standard business-to-business (B2B) transaction.

However, the use of a third person's credit card for payment might require additional documentation to establish a clear link between the payment and the invoice.

To ensure compliance, it's recommended that your client: -

Obtains a valid tax invoice from the e-commerce company. - Maintains proper documentation of the payment made via

Reply
On 23 December 2024 at 20:57
User Avatar

Consultant
28 Points Joined January 2009
Thankyou sir..
Reply
On 24 December 2024 at 11:58


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading