Has anybody used apps like velocity pay for payments to direct bank account?

[divyam_taparia]

Velocity pay is an app which lets user to transfer money to vendors of your business who dosen't have bank account. It is a PCI DSS Compliant platform.
So the catch is if you register with ur business pan card you get charged a convenience fee of 1.25 + GST of 18% which comes upto 1.44%. U can claim GST refund and get gst refund so ur practically paying 1.25%. Now suppose I have an infinia credit card which gives reward rate of 3.33%. Is it a free money scheme or is there some things i need to keep in mind?

 

[V360V360 is verified member.]

Scheme is simple:

1. Get notice from IT
2. maybe also land in jail as you are about to commit fraud on GST number too

 

[statusquo]

Why get notice from IT? Isn't this legal to do?

 

[MangoRush]

Why get notice from IT? Isn't this legal to do?

As long you dont involve GST and use personal PAN, it's fine.
The moment you add in GST, it becomes fraud.

 

[statusquo]

How is it fraud? Your business is paying a fee to use a service to pay a vendor. There is GST charged on this fee. That GST should be claimable since you've paid it as part of your business spends. Of course, the credit card rewards will also go into the business account, and cannot be used for personal purposes

 

[statusquo]

@V360, looking to hear your views as well