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SUBVENTION INCOME UNDER GST

27 June 2018

if dealer sold good with Credit Card,
Financial Service Provider of Credit card issue of Invoice in name of dealer. Financial services Provider deducted some amount from such payment. Financial Service Provider shows In particular Subvention Income.

Is dealer can take credit of such invoice.....

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6 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 28 June 2018

Yes , offcourse , you can claim ITC, but ask for Tax invoice for the same from financer

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Aashish Sachdeva (839 Points)
Replied 28 June 2018

I found on Google Subvention Income is like commission income ...

so what about 194H

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 28 June 2018

YES ITS COMMISON AS PER INCOME TAX TDS HAS TO BE DEDUCTED

Prem (B.Com) (2 Points)
Replied 22 February 2020

Hi Sir,

Is there any Limit for deduction in F.Y 19-20

Harshada Chavan (2 Points)
Replied 07 August 2021

Can you mention the relevant section/rules / notification where i can understand accounting process for subvention income?

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harsh goyal (6 Points)
Replied 18 April 2024

What is the accounting entry to be done ??

As the party account is settled against the payment received from financer and if i take the credit, the financer will be credited and a balance will appear in his ledger.

Please advice