nayab (Sr.Officer Accounts ) (250 Points)
28 April 2020
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 28 April 2020
What will you receive for paying the amount to dealers?
nayab
(Sr.Officer Accounts )
(250 Points)
Replied 28 April 2020
MARIES
(GST Consultant)
(219 Points)
Replied 28 April 2020
@ nayab
Dear Sir, Your query could have been a little more elaborative. However, I understand that you are going to give some amount to your dealers ( I presume that you are engaged in supply of goods) for slow down of sales due to COVID-19.
Scenario 1: In this case, if the amount given is for conducting any special SALES MELA OR ANY KIND OF SALES PROMOTION ACTIVITIES BY YOUR DEALERS, then it will be treated as SUPPLY OF SERVICE PROVIDED BY YOUR DEALERS, they have to pay GST on such amount under forward charge.
Scenario 2: In this case, the amount given by you to the dealers is nothing but just a price reduction (for attractive more sale) of your goods which were supplied earlier. Then you need to raise credit note along with transfer of amount. Your dealers are required to reverse the ITC (proportionate to price reduction) and you are entitled to reduce your output tax which was already paid.
Dear Sir, if doubt still persists, you can send your query whatsapp on 6380 592 749
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 28 April 2020
What do you mean by interest amount? Please elaborate the case or you can send the same in private message/chat
sanjith kotni
(Articled assistant)
(663 Points)
Replied 28 April 2020
nayab
(Sr.Officer Accounts )
(250 Points)
Replied 29 April 2020
Dear Sir , Thank you for quick response Example : Our Dealers invest some amount for purchase of materials .after Receiving the 100 % amount i issued the materials to my dealers. Due to covid-19 that materials unable to sale by Dealers . now they requesting pl give me what ever purchased that materials value interest (Bcoz Dealer was that investing amount taken with interest some on ) now our company agreed that will pay 50 % amount in that interest value . pl suggest can i pay that amount with GST or not pl suggest
nayab
(Sr.Officer Accounts )
(250 Points)
Replied 29 April 2020
Query :
We have been received the amount from dealer for the materials Supplied by way of funding through bank ( WC / Inventory Funding Loan )
Due to lock down ( COVID-19), dealer not able to sell the goods , hence he is been incurring the interest cost for the unsold inventory.
In this scenario :management taken a step to provide the interest cost @ 50% to support dealers .
from the above transaction , What is the best way to get it paid .
Which are all options available under GST Act .
SAC Code /HSN Code to be used Either Credit Note by OEM / Invoice by Dealer.
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 29 April 2020
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 29 April 2020
sanjith kotni
(Articled assistant)
(663 Points)
Replied 29 April 2020
CAclubindia
