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?
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GST APPLICABILITY ON COMMISSION
Replies (5)
No. on the contrary GST will be liable over the commission/auxiliary supply by Mr. C. Check if RCM is applicable...
I couldn't understand, could you pleaee elaborate
A sold directly to B at some fixed price, with the tax invoice collecting GST over it. So, A has to pay the said amount to treasury, and not to C...
Iam confused about that is gst applicable on that 10% Commission amount which Mr A will pay to Mr C as commission on sales?
Dear :
Commission Earned by : Mr C.
Mr C will Raise Bill to Mr. A
Now its depend upon the agreement between Mr. A & C that whether to charge GST on & above commission amount received or Have adjust GST & compute it Inclusive.
Commission Earned by : Mr C.
Mr C will Raise Bill to Mr. A
Now its depend upon the agreement between Mr. A & C that whether to charge GST on & above commission amount received or Have adjust GST & compute it Inclusive.
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