MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
12 March 2020SIR,
A DEALER PURCHASED RECHARGE CARD FROM A COMPANY FOR 100000/- MRP.
COMMISSION FOR THIS IS RS,5000/- SEPARATELY.
FOR THIS COMMISSION CAN WE RAISE A COMMISSION INVOICE FOR 5000/- +18% GST?
AND SECOND THING WE SALE TO RETAILER FOR THE SAME 100000/- MRP
AND COMMISSION FOR THIS IS WE GIVE 4000/- +18% GST
FOR US ONLY 1000/- IS COMMISSION AS NET RESULT.
HOW TO REDUCE THIS GST,
CAN WE ASK THE SAME COMMISSION INVOICE FROM THE RETAILER ALSO THEY HAVE TO PAY 18% RIGHT?
KINDLY SOLVE THIS PROBLEM.
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 12 March 2020
Dear Murgadoss,
Basic understanding is correct. Although, please note, if it is discount (on purchase or on sale) then credit note can be raised (with or without GST) to pass on the benefit.
If it is not discount, then GST would be liable, and you would need to raise 5,000 + 18% and obtain retailer invoice for 4,000 + 18% where ITC is eligible.
Anshuman Basu
(account -GST)
(1556 Points)
Replied 12 March 2020
CA. Roopali Kadam
(Jobs on assignment basis.)
(1459 Points)
Replied 12 March 2020
I think you can raise invoice of 5000 inclusive of 18% GST
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 13 March 2020
Lalit Pandey
(Indian Business Researcher)
(313 Points)
Replied 13 March 2020
MURALIDOSS
(INCOME TAX PRACTITIONER)
(1329 Points)
Replied 13 March 2020
YES RAJA SIR,
EXACTLY RIGHT SIR, FIRST WE PURCHASE AS A DISTRIBUTORS FOR THE VALUE OF RS.100000/- IN HERE THE COMPANY ISSUE THE INVOICE FOR 100000/- (INCLUDING GST OF 18% i.e 84745.76 + igst 15254.24 /- BUT THEY PUT THE TOTAL EPRS VALUE UNDER THE INVOICE IS RS.104986.88/-
IT MEANS 4986.88/- IS GST PAID COMMMISSION/DISCOUNT. RIGHT SIR?
NOW WE WANT TO SELL THE SAME TO RETAILER FOR 3500/- COMMISSION/DISCOUNT..
IN THAT INVOICE CAN WE JUST CHANGE THE EPRS VALUE AS 103500/- IS ENOUGH OR NOT?
SO THAT OUR PORTION OF INCOME ONLY RS.1486.88/- FOR THIS WE NEED TO PAY GST OR NOT?
PLEASE...
MURALIDOSS
(INCOME TAX PRACTITIONER)
(1329 Points)
Replied 13 March 2020
YES RAJA SIR,
EXACTLY RIGHT SIR, X LTD ISSUE SALE INVOICE FOR THE VALUE OF 100000/- (INCLUDING GST) TO Y LTD., (IDSTRIBUTOR) ALSO X LTD NOTE THE TOTAL EPRS VALUE UNDER THE INVOICE IS RS.104986.88/-
IT MEANS 4986.88/- IS GST PAID COMMMISSION/DISCOUNT. RIGHT SIR?
NOW Y LTD WANT TO SELL THE SAME TO Z LTD (b2b) FOR 3500/- COMMISSION/DISCOUNT..
IN THAT INVOICE CAN Y LTD JUST CHANGE THE EPRS VALUE AS 103500/- IS ENOUGH OR NOT?
SO THAT Y LTD PORTION OF INCOME ONLY RS.1486.88/- FOR THIS WE NEED TO PAY GST OR NOT?
PLEASE...
CAclubindia
