Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Taxation on Payment pass through entry

588 views

Save Share

Drive Account

24 Points Posted on 22 June 2024

I'm B

A is my friend who sales fruits to C, but due to whatever reasons maybe, I'm credited with Amount of sale by C, then I'll transfer that amount as it is to A

TDS will be booked on name of A, who is actual saler

Here, B is not having connection with sales, he is just accepting payment and transfering it to A (that too also through bank)

So, in this case, will B is liable to pay any tax, under Income Tax ? Is there any legal requirements B have to fullfill?

Replies (2)

Quick Summary

This discussion explores the tax implications for individual B, who receives payment from customer C for fruit sales made by friend A, and then transfers the full amount to A. All parties are Indian residents and payments are made via bank transfers. The key question is whether B incurs any income tax liability or has legal obligations, given they are merely facilitating the payment and not involved in the sale itself. Both A and B are not registered for GST.