Ankit Goenka (IT Dealer) (79 Points)
11 April 2012I am made to understand that if i use my credit card to do online shopping it would be treated as drawings - correct me if wrong.
I would like to purchase somethings online for resale - the only mode the supplier would accept payment is either Credit card, Debit card, Online Bank Transfer ... what should I do? How should i pay?
Thanks
Devendra
(Chartered Accountant)
(4775 Points)
Replied 11 April 2012
If you have used the Credit Card for Household Expenses, then such withdrawals shall be treated as Drawings. If you use the Credit Card to Purchase Goods which are used for the Business and being sold further by you, then payment through Credit Card is allowed. Also you will have to maintain the Purchase Bills with you.
But it is advisable that you ask your supplier whether he can accept the payments in any other mode other than Credit / Debit Card.
Regards,
Devendra Kulkarni
CAclubindia
