i am from a trading business. my company deals in a various product. i got confuse in one transaction we are doing.
we are agent for MNC company and company sells all its goods through agents only. credit period allowed to customer for payment of purchase is 10 days.
now what we do we pay before 10 days to company on behalf of customer (for which we got incentives). and ask customer to pay us with in that 10 days. If customer fails to pay us with in 10 day form the date of purchase we will charge interest on the purchase amount @18% P.A. so my queary is whether we have to add GSt in the interest we charged or only interest amount to be collect.
CAclubindia
