MR C (AGENT) FINDS A BUYER FOR MR A (MANUFACTURER) AND MR C DIRECTED MR A TO SELL THE GOODS AT 10% ABOVE THE PRICE TO MR B (BUYER). MR A SOLD THE GOODS DIRECTLY TO MR B AND MR B PAID THE SAID AMOUNT TO MR A. AND NOW MR A PAID THE EXCESS 10% COLLECTED AMOUNT TO MR C AS HIS COMMISSION.
SO IN THE ABOVE TRANSACTION, IS MR A LIABLE TO PAY GST TO MR C FOR THAT EXCESS 10% WHICH HAS ALREADY BECAME THE PART OF ABOVE TRANSACTION?
No. on the contrary GST will be liable over the commission/auxiliary supply by Mr. C. Check if RCM is applicable...
CAclubindia
