Help Needed: GST ITC on purchase of Laptop from Merchant Account on Amazon using credit card

78°
Deal Newbie
JonSnowLongclaw

My friend wants to buy a laptop using his merchant account. He wants to use my Amazon Pay credit card for the payment and the cashback benefits.
Will there be any law related issues regarding the payments as he is not directly paying for the laptop. Is it safe to do the above mentioned transaction?

Thank you in advance

17 Comments  |  
6 Dimers
  • Sort By
Community Angel Community Angel
Link Copied

If he is buying laptop for his personal use then he cannot claim ITC one cannot claim ITC on personal expenses
Items available on Amazon and Flipkart are for customer’s personal use and not fo resale

Deal Subedar Deal Subedar
Link Copied

There’s no issue he can avail it. Just ask him to pay credit card bill from his business account. Just the amount of laptop

Deal Subedar Deal Subedar
Link Copied

Do note that Amazon may deny the 5% cashback on merchant account

Pro Community Angel Pro Community Angel
Link Copied
drupal wrote:

If he is buying laptop for his personal use then he cannot claim ITC one cannot claim ITC on personal expenses
Items available on Amazon and Flipkart are for customer’s personal use and not fo resale

Theoretically, but it does work actually
Illegal in a sense smile

Deal Newbie Deal Newbie
Link Copied
drupal wrote:

If he is buying laptop for his personal use then he cannot claim ITC one cannot claim ITC on personal expenses
Items available on Amazon and Flipkart are for customer’s personal use and not fo resale

It is obviously for personal use. But for tax purposes, it will be shown as an asset in the books of the business, like everyone does. So ITC won’t be an issue. I have questions regarding cashback.

Deal Newbie Deal Newbie
Link Copied
Expand
androgame wrote:

Theoretically, but it does work actually
Illegal in a sense smile

Illegal in every sense.

Deal Newbie Deal Newbie
Link Copied
Tjs15 wrote:

Do note that Amazon may deny the 5% cashback on merchant account

Do you have any idea how much cashback will they allow?

Deal Subedar Deal Subedar
Link Copied
Expand
JonSnowLongclaw wrote:

Do you have any idea how much cashback will they allow?

I had once received 5% but later i read somebody had pointed out that this card is only for personal use n not commercial

Pro Shopping Friend Pro Shopping Friend
Link Copied
Expand
JonSnowLongclaw wrote:

Do you have any idea how much cashback will they allow?

U will get 5% if card issued Amazon account is Prime.
No limit on CB, 50% of card limit spends are safe(may not cause card block)
Merchant account is immaterial

Deal Newbie Deal Newbie
Link Copied
Expand
Tjs15 wrote:

I had once received 5% but later i read somebody had pointed out that this card is only for personal use n not commercial

Other than tax implications, this is the thing I am worried about, which I did not realise earlier.

Deal Newbie Deal Newbie
Link Copied
Expand
caks2006407 wrote:

U will get 5% if card issued Amazon account is Prime.
No limit on CB, 50% of card limit spends are safe(may not cause card block)
Merchant account is immaterial

It is between 50-58% of the credit limit. Also, does he need to purchase prime for a month (which is much cheaper than the 2% excess rewards he will derive)

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
JonSnowLongclaw wrote:

Illegal in every sense.

Illegal kya hota h bhau
Jab tak notice na aaye, tab tak majamaaa
Par fir by chance Aa Gaya par tum prove na kar pao toh stuff hoga stuck_out_tongue stuck_out_tongue

Pro Shopping Friend Pro Shopping Friend
Link Copied
Expand
JonSnowLongclaw wrote:

It is between 50-58% of the credit limit. Also, does he need to purchase prime for a month (which is much cheaper than the 2% excess rewards he will derive)

Yes subscribe Prime well before making purchase, like at least a day in adv to avoid CB mismatch.
If its just one occasional purchase then not an issue even if its 60-70% of card limit.

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
JonSnowLongclaw wrote:

It is obviously for personal use. But for tax purposes, it will be shown as an asset in the books of the business, like everyone does. So ITC won’t be an issue. I have questions regarding cashback.

Dep mat claim krna gst part pe
And ho sake toh, take delivery at gst registered address only

Deal Subedar Deal Subedar
Link Copied
Expand
JonSnowLongclaw wrote:

It is between 50-58% of the credit limit. Also, does he need to purchase prime for a month (which is much cheaper than the 2% excess rewards he will derive)

He is using your card right? Then your account need to be prime not his. The account from which Card is issued

Missing