we are in the business of promoting goods and services of others by distributing coupons .promoting the goods and service of others through discount card programme.
when any customer have balance of 500 points , they can make payment by 500 points only and no cash required. that 500 points will be credited to freedeem cash a/c along with 5% extra . for ex:- if customer reedeem 500 points , businessman will get 525 freedeem cash.
that can be used by businessman in two ways :- 1) they can topup their prepaid account 2) they can ask for payment from us.
i want to know whether any GST & TDS ARE APPLICABLE ON THE SAME .
PLEASE SUGGEST HOW ABOVE TRANSACTION RECORDED IN BOOKS
24 June 2019
RESPECTED SIR RS.25 WILL BE EXPENSES FOR OUR COMPANY & NOT INCOME FOR OUR COMPANY . AS PER YOUR REPLY GST WILL BE APPLICABLE AT TIME OF TOPUP PREPAID ACCOUNT. BUT I WANT TO KNOW WHETHER ANY GST LIABILITY AT TIME OF GIVING CREDIT TO BUSINESSMAN OF RS.525 FOR PURCHASE BY CUSTOMER FOR RS.500 ARISES ? OR ANY TDS LIABILITY ?
CAclubindia
