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.
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.
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