• Using personal credit card for business purpose

I am director in a newly registered Pvt Ltd company. We need to buy chairs, ACs, laptops for our new office purpose. With Amazon's Prime Day coming up, I was thinking of making use of the discounts that comes with it. But the company at present doesn't have a credit card (neither with or without offers) and I would like to use my personal credit card for the laptop and AC purchases if that's possible. The invoices will be GST complaint ones since I have business account with Amazon. I stand to save at least 15,000 Rs if I use my personal credit card instead of the company's debit card due to the offer my personal credit card has.

Would this entire thing be fruitful? Can the private limited company reimburse director (me in this case) for the credit card purchases and claim expenses in the company's account for the purchases made? Would me using the personal credit card make any issues in the future if we claim the expenses in the company's income tax filing and also, for claiming GST ITC. 

The items would all be 100% used for business purpose and the bill will all show company's name and registered address.
Asked 29 days ago in Income Tax

Yes, your can use your personal credit card and make the payment on behalf of the Company. The Company will then reimburse you against the payment made. Kindly show the reimbursement entry in the Company's books within a day or two after you complete the credit card payment. 

The Company will be able to claim the expenses while calculating profit, 

Please ensure that the business account pertains to the Company and the Invoice bears the GSTIN of the Company for smooth flow of ITC.

If you find the answer helpful, then please give ratings.

 

Puja Sharma
CA, Jaipur
53 Answers

Not rated

- Yes it is possible

Vivek Kumar Arora
CA, Delhi
4476 Answers
606 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

Yes, you can do that.

Payal Chhajed
CA, Mumbai
5170 Answers
236 Consultations

5.0 on 5.0

Yes you can purchase them using your personal credit card and then reimburse the amount bill by bill from the company.

 

However remember that the invoice is in name of your company or else it could be considered as perquisite.

 

The invoice needs to be in the name of the company.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you 

Naman Maloo
CA, Jaipur
4053 Answers
67 Consultations

5.0 on 5.0

Yes you can do that but make sure that the invoice is in name of your company or else it could be considered as perquisite of yours.

 

 

Prerna Peshori
CA, Pune
86 Answers

5.0 on 5.0

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