• Legal or Illegal

Dear Sir,

I'am from Karnataka, planning to start online Quiz and Puzzle competition.
Since it is online anyone can join within India by paying entrance fees.
The winner will be awarded with cash prize, and the winner will be selected on number of right questions and the time taken to complete the competition.

Please advice me is it legal to collect and to give cash prize.
My second option will be collecting entrance fees and prize will be Paytm cash or Amazon Gift vouchers.

Thanks & Regards,

Jayanth
Asked 8 months ago in Business Law from Bangarpet, Karnataka

you have to obtain licence under provisions of prize competition act

2) licence is required in case prize money offered is more than rs 1,000

3) further number of entries should not exceed 2000

Ajay Sethi
Advocate, Mumbai
56959 Answers
3456 Consultations

5.0 on 5.0

Dear Client,

Online quizzes are legal in India. Many such online gaming prevalent and in course.

Such online gaming is "game of mere skill" acc. to Public Gambling Act and permissible under requisite license.

Entrances fees - No issue.

Pay tm or Amazon ? depends on their policy- issue not legal to advise on this.

Yogendra Singh Rajawat
Advocate, Jaipur
7604 Answers
6 Consultations

4.7 on 5.0

You can awarded the winner of online quiz both with cash prize or with paytm cash and amazon gift voucher.

Cash prize technically means through Cheque or any other mode.

The only liability arises is of Tax Deduction at Source (TDS) @ 30% u/s 194 B of Income Tax Act.

It is legal to collect and give cash prize.

Anshul Mittal
Advocate, Gurgaon
6 Answers

Not rated

1. If the competition is based on sheer academic material only then there is no hindrance in doing so.

2. However there should be transparency in selection of candidates for prizes or money based on right answers.

3. If there is any discrepancy the candidates can challenge the platform.

4. Hence success of this venture would solely depend on the transparency of the business.

Devajyoti Barman
Advocate, Kolkata
15387 Answers
211 Consultations

5.0 on 5.0

The onus will fall on the winners as winnings from quiz shows are taxable and as a business you may have to deposit the Tax and give a TDS certificate to the winners. Other than that you will need to do the regular registry and get adequate legal sanctions to run your operations smoothly. All the best.

C. V. Jadhav
Advocate, Bangalore
535 Answers
15 Consultations

4.7 on 5.0

Dear,

Yes, it is permissible and legal in INDIAN law to collect and give cash prize.

It's a online quiz,so no problem and people used their skill here.

Tarun Agarwal
Advocate, Jaipur
633 Answers
2 Consultations

4.9 on 5.0

Yes it is legal

You can take a receipt from the winners stating that they have received the prize money

the entrance fees which you collect will be counted as your revenue or income and will be taxed as per your tax slab

Yusuf Rampurawala
Advocate, Mumbai
3186 Answers
12 Consultations

5.0 on 5.0

It is illegal.

Jugal Kishore Agrawal
Advocate, Jaipur
81 Answers

Not rated

Sir it is legal to operate quiz competition make sure you maintain transparency and make user agree a agreement wherein all rules of the quiz are clearly mentioned. Further the payment of prize money shall be done after the TDS is deducted.

Shubham Jhajharia
Advocate, Ahmedabad
11874 Answers
45 Consultations

5.0 on 5.0

Hello,

Yes it is legal and there is no illegality in conducting such quizes.

You may go ahead with the said venture.

Regards

Anilesh Tewari
Advocate, New Delhi
14193 Answers
191 Consultations

5.0 on 5.0

1. Register your online program with cyber crime police, Bangalore.

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

4.9 on 5.0

Please advice me is it legal to collect and to give cash prize.

There is no legal infirmity in it because there is neither any law to regulate such business nor there is any restriction on it.

My second option will be collecting entrance fees and prize will be Paytm cash or Amazon Gift vouchers.

You can tie up with the company accordingly.

T Kalaiselvan
Advocate, Vellore
46951 Answers
557 Consultations

5.0 on 5.0

IT is legal. Subject to cash payment limit. Do any activity through legally registered process and name.

Sudhindra Bhat
Advocate, Bangalore
49 Answers

Not rated

Dear Sir,

The game must not be choice based. It must be based upon intelligence. Collecting nominal entrance fee is legal. It may be registered with some authority under Karnataka Shop and Establishment Act. Having licence lessen the future complications. If your earning are between Rs.2 to 5 lakhs per month there will be no problem. Unless some body complain you face no problem.

Kishan Dutt Kalaskar
Advocate, Bengaluru
3544 Answers
76 Consultations

5.0 on 5.0

It is completely legal to collect entrance fee and to give cash prizes to the winner, however the contents of the quizzes and puzzles should not be objectionable.

You would also have to procure a licence to operate such a business. Also, make sure that the terms and conditions of your website are meticulously drafted which would protect you from future contingencies or disputes, if any.

Regards.

Siddharth Jain
Advocate, New Delhi
2839 Answers
31 Consultations

5.0 on 5.0

"licensing authority" means any officer or authority appointed by the State Government, by notification in the Official Gazette, for the purpose of granting licences under this Act;

2) you can advertise in social media and newspapers

Ajay Sethi
Advocate, Mumbai
56959 Answers
3456 Consultations

5.0 on 5.0

licensing authority” means any officer or authority appointed by the State Government,

by notification in the Official Gazette, for the purpose of granting licences under this Act;

Every person desiring to obtain a licence referred to in

section 5 shall make an application in writing to the licensing authority in such form and manner as

may be prescribed.

On the receipt of such application, the licensing authority, after making such inquiry as it

considers necessary, shall, by order in writing, either grant the licence or refuse to grant the licence.

The licensing authority may―

(a) require any person promoting or conducting a prize competition to produce before it the

accounts and other documents kept by such person or to furnish to it such other information

relating to the prize competition as it may require;

(b) inspect at all reasonable times the accounts and other documents kept by such person.

You can promote your business through various modes including newspaper publication etc.

T Kalaiselvan
Advocate, Vellore
46951 Answers
557 Consultations

5.0 on 5.0

The primary object of this law is the price should be for knowledge or skill and not for luck only. Do your business confirm it? if yes you should get license otherwise it is illegal work.

Jugal Kishore Agrawal
Advocate, Jaipur
81 Answers

Not rated

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