Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Commission under gst

prince (Accounts consultant) (34 Points)

29 May 2018

Dear sir,

I have a sole proprietorship business with GST and I have earned income from advertisement services and commission. I receive the commission from clients with the deduction of TDS @ 5%. We have received the GST invoice from the supplier (Service provider) and provide GST invoice to the client (Third party) with including the amount of commission. Is it possible or not?

Reply
Follow
Share

4 Replies

Subhkaran Surana (343 Points)
Replied 29 May 2018

you are acting as an agent since you are facilating in the supply of service and as per section 24(viii) , mandatory registeration is required for agent and thus the transaction is liable to GST as per section 9 of CGST

Upgrade to CAclubindia Pro. Subscribe Now!

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 29 May 2018

There is nothing wrong in these transactions. it is a normal business transaction circle. You can claim ITC on inward service ( on the basis of invoice issued by supplier).