30 November 2019
Let's my company has policy to give Prepaid Card of Rs. 10,000 each to top 1000 employees of the month. So we purchased 3,000 prepaid cards from any merchant (let's say HDFC PayZapp Card) at a discount of 1%. This card comes with non-returnable clause, which means we can't return to merchant.
Due to some internal reason, our company's policy revoked and we stopped giving these Prepaid Cards to employees. At this point, company had a stock of 2,000 cards.
Since, we are not eligible to return these to merchant; there is thought to swipe all these cards on company's POS machines...
Query #1 - Is this legally valid? Query #2 - Will this swiping of prepaid gift card into company's own POS machine attract GST?
02 December 2019
Query -1:- Where is the question of Legality in this case??? Query -2:- Please explain How will you use the cards in more elaborate manner.
CAclubindia
