09 January 2019
Dear, Please suggest , we are paying advance to our subsidiary company and management decide subsidary company will pay interest . Subsidiary company also sale some material to .
09 January 2019
Since the transaction involves supply of Goods, GST in not levied at the time of advances. GST will be levied only when the actual supply of Goods is made. There is no GST on Interest element.
09 January 2019
Dear, my queries is , We are paying some amount to Our subsidiary company for their operation and they are also supply to raw material to us . But they are not able to sold the goods according to payment received from us . As per management decision -Difference amount between Sale- Payment , subsidiary will give interest to us as per balance availability according to quarterly basis . physicallly they are not giving any interest . Just complied the accounting entry , of both company. So , GST implication will applicable of any one .
CAclubindia
