Gstfor commission agent

365 views 13 replies

Please help me to understand the aplicability of GST on a Commission Agent.

My client who is registered under GST, ia a software development company. Now, he has engaged sales team in different cities who bring business to my client and my client use to give 10 % commission on whatever busiess was brought by his team.

Now, under GST, how that comossion agent should be paid their commission?

Should Commission agnet need a GST registration number and raise a invoice to my client?

Should any TDS should be dedcuacted while paying commission to the team?

 

Replies (13)
Tds should be deducted @ 5% and if his turnover cross the prescribed limit rs 20 lakh then should take gstin... And raise commission invoice charging gst rate @ 18%
It is advisable to take gstin no... And you have to deduct tds @ 5%
Now rcm has been suspended that's why u r not required to pay gst @ 18% on rcm basis... Just deduct tds @ 5 %

"Now rcm has been suspended that's why u r not required to pay gst @ 18% on rcm basis... Just deduct tds @ 5 %"

 

Is that mean, Agent need not to raise us any invoice? We merely has to  make payment deducting TDS 5%
 

Yes just deduct tds and make payment... If commission agent turnover mote than Rs 20 lakh then he should be registered or he can voluntary take gstin... Bdw commission amount is how much generally

Amout would range between 2500/- upto 15,000/-. Depening upon the services he sells.

 

 

Just deduct tds and make the payment and book commission expenses... If commission agent wish to take gstin no then he can take... Then he issue invoice to urs company... Otherwise no requirement now and even rcm is also not applicable now

Now, if he has got GSTIN and raised COmission Invoice to us, should we

1. Pay invoice amount including GST

2. Or pay commission amount deducting TDS @ 5%.

 

 

You should pay commission along with gst @ 18% and get itc of that 18%...no loss at ur end and make payment after deducting tds on commission excluding gst amount i. e taxable amount

For eg:

Original Service invoice= 2,50,000

Commission @ 10%= 25,000

The agent raises inoice= 25,000+18% GST= 29,500/-

This means have to take payment of 29,500/- to him and get ITC of 4,500/- ?

Now, I need to understand your statement of

"...make payment after deducting tds on commission excluding gst amount i. e taxable amount...."

 

 

 

 

Tds should be deducted on 25000 @ 5% i. e 1250
Yes itc of rs 4500 and make payment 29500-1250 to commission agent
Hope ur all queries now resolved??

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