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Suggestion needed: Credit Card for Goverment Tender Payments

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chiragj

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Hi, my business requires regular payment to goverment to the tune of 5 crores rupees every month whole year round, I was wondering if there is a way to gain extra benefits for the same in the form of casback or reward points. Any help in suggestion of any helpful card would be great. The goverment portal do charge 1.18% fees for credit card payments.
 
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Hdfc biz black is the best cc for tax purposes. Nothing comes close. But I am not sure hdfc will allow transactions worth such high value. You need to look at corporate card primarily Amex/icici/ yes/ hdfc.

Even if hdfc agrees for this kind of transactions on biz black, you should contact a lawyer( not ca) 1st. Limited liability is enforceable only when you treat your business as a different entity. Small volume/value is fine but when you cross a certain threshold , it becomes problematic. Risking limited liability for some cash back/reward isn't worth it.

If you are able to get biz black under business pan, then take it. But limit will be much lower than your requirement.
 
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chiragj said:
Hi, my business requires regular payment to goverment to the tune of 5 crores rupees every month whole year round, I was wondering if there is a way to gain extra benefits for the same in the form of casback or reward points. Any help in suggestion of any helpful card would be great. The goverment portal do charge 1.18% fees for credit card payments.
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5cr every month? There are no cc they would be regarding then against 5cr every month then cause of1.18%
 
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sidp said:
Hdfc biz black is the best cc for tax purposes. Nothing comes close. But I am not sure hdfc will allow transactions worth such high value. You need to look at corporate card primarily Amex/icici/ yes/ hdfc.

Even if hdfc agrees for this kind of transactions on biz black, you should contact a lawyer( not ca) 1st. Limited liability is enforceable only when you treat your business as a different entity. Small volume/value is fine but when you cross a certain threshold , it becomes problematic. Risking limited liability for some cash back/reward isn't worth it.

If you are able to get biz black under business pan, then take it. But limit will be much lower than your requirement.
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I did recently got myself the HDFC biz black in my name personal name also the business is in my individual name itself, I have been using the card for the same but not for the whole extent, i filled up the limit and only used the whole limit thrice only this month. The thing with the tender is I don't have to make the whole payments in one go, I can use it to pay small portions of the sum, refill the credit limit and then again do the same.

Though you mentioned limited liability, do bear with me, why should I be worried about it at the end of the day I'll settle the whole amount from my side. I just thought if there was a way to get some cashback or reward points for the same while offsetting the convenience fees at the same time.
 
vaibhav111 said:
5cr every month? There are no cc they would be regarding then against 5cr every month then cause of1.18%
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It dosen't have to have a limit of 5cr, I can refill it multiple times and make multiple payments and the also its not that I have to make the whole payments this way, whatever is the maximum amount till the payments from credit card would be beneficial.
 
chiragj said:
It dosen't have to have a limit of 5cr, I can refill it multiple times and make multiple payments and the also its not that I have to make the whole payments this way, whatever is the maximum amount till the payments from credit card would be beneficial.
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So upto 5L on bizblack then would make sense then you need to create multiple Challan and then use amex plat travel if canara bank gateway work on that particular day then upto 4L would make sense. These cc come to my immediately.
 
chiragj said:
I did recently got myself the HDFC biz black in my name personal name also the business is in my individual name itself, I have been using the card for the same but not for the whole extent, i filled up the limit and only used the whole limit thrice only this month. The thing with the tender is I don't have to make the whole payments in one go, I can use it to pay small portions of the sum, refill the credit limit and then again do the same.

Though you mentioned limited liability, do bear with me, why should I be worried about it at the end of the day I'll settle the whole amount from my side. I just thought if there was a way to get some cashback or reward points for the same while offsetting the convenience fees at the same time.
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Alright a sole proprietorship then too if your comfortable with going over 10L AIS thing then no issue should come up.
 
vaibhav111 said:
So upto 5L on bizblack then would make sense then you need to create multiple Challan and then use amex plat travel if canara bank gateway work on that particular day then upto 4L would make sense. These cc come to my immediately.
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Why only upto 5L on bizblack? The base reward rate 3.33% upto 1,50,000 rp that mean till Rs 45,00,000/- i would get rp right. Hope my calculation are good.
 
chiragj said:
If possible can you please elaborate on the AIS thing, my business turnover is already in crores.
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Ais wouldn't be a problem if you are paying your tax properly. Ca will take care of it. He might have to attach your personal cc statement while filing for your business.

chiragj said:
Though you mentioned limited liability, do bear with me, why should I be worried about it at the end of the day I'll settle the whole amount from my side. I just thought if there was a way to get some cashback or reward points for the same while offsetting the convenience fees at the same titime.
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I was talking about limited liability not liability. Limited liability might be the most important factor which drives innovation, risk taking, economic development going back to east India days. I'll explain LL with an ex.

Let's say you are a builder working on multiple projects. You have registered each one as a spv. if due to some unavoidable reason there is an accident and few people lose their life/property. Or if One of the business goes bankrupt, then Your personal property & other spv wouldn't be liable to cover the liability of that particular spv. This is limited liability. But this is enforceable only if you operate that spv as an spv( different special entity). If you accept /do payment using your personal account( or other spv's account), use business property for personal benefit (Even if you are sole owner) etc then opposing counsel can argue you took no step to separate your business from yourself. Then you become liable to pay your business liability.

Doing some transactions is fine claiming convenience. But If you do business transactions worth crores every month on personal pan, it might be problematic. Plus if you go over your assigned cl once in a while , it is fine but if you regularly go thrice over every month, hdfc will block the card.
 
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sidp said:
Ais wouldn't be a problem if you are paying your tax properly. Ca will take care of it. He might have to attach your personal cc statement while filing for your business.


I was talking about limited liability not liability. Limited liability might be the most important factor which drives innovation, risk taking, economic development going back to east India days. I'll explain LL with an ex.

Let's say you are a builder working on multiple projects. You have registered each one as a spv. if due to some unavoidable reason there is an accident and few people lose their life/property. Or if One of the business goes bankrupt, then Your personal property & other spv wouldn't be liable to cover the liability of that particular spv. This is limited liability. But this is enforceable only if you operate that spv as an spv( different special entity). If you accept /do payment using your personal account( or other spv's account), use business property for personal benefit (Even if you are sole owner) etc then opposing counsel can argue you took no step to separate your business from yourself. Then you become liable to pay your business liability.

Doing some transactions is fine claiming convenience. But If you do business transactions worth crores every month on personal pan, it might be problematic. Plus if you go over your assigned cl once in a while , it is fine but if you regularly go thrice over every month, hdfc will block the card.
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Ok thank you for such a detailed explaination.

Genuinely Would I be breaking any rules if I go over my credit limit by refilling and resuing?

Also my personal pan and business pan are one.
 
chiragj said:
Also do you have any idea about the add on card's points like if I get transactions done through add on card will I be able to earn twice the monthly limit (i.e. 3L) RP?
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Nothing extra, addon card is a facility to get another physical credit card for your family member, so they can use when you and your family member are in different locations

The addon card expenses will add to the primary card holder only. The credit account is still one and owner is primary card holder
 
chiragj said:
Hi, my business requires regular payment to goverment to the tune of 5 crores rupees every month whole year round, I was wondering if there is a way to gain extra benefits for the same in the form of casback or reward points. Any help in suggestion of any helpful card would be great. The goverment portal do charge 1.18% fees for credit card payments.
Click to expand...
If you are doing such high worth big transactions, if you are not using bank account, then you may face issue in your accounting right. Like if you want to see your accounts for any purpose.

You need to now keep/preserve the credit card statements along with bank statements mapping to those transactions.

Your usage looks very huge.
 
avikrish said:
If you are doing such high worth big transactions, if you are not using bank account, then you may face issue in your accounting right. Like if you want to see your accounts for any purpose.

You need to now keep/preserve the credit card statements along with bank statements mapping to those transactions.

Your usage looks very huge.
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Yeah but all the transactions would be made through my account to credit card and then to the goverment and in the end all 3 statements would cross checked. So its all good.
 
chiragj said:
Yeah but all the transactions would be made through my account to credit card and then to the goverment and in the end all 3 statements would cross checked. So its all good.
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If you are doing its great , I am also doing like this with almost 24 cards for my entire family worth 20-25 Laks , April month is a hell to map all these.
 
avikrish said:
If you are doing its great , I am also doing like this with almost 24 cards for my entire family worth 20-25 Laks , April month is a hell to map all these.
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Oh ok, do you have a credit card or credit cards to suggest so this can be more rewarding, using two three credit cards is fine with me. I am already using the HDFC biz black card.
 
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