Shivani (Learner) (1881 Points)
14 July 2018dear friends
if X is registered in Delhi and he has an agent Y in Delhi to whom he sends goods so that agent can sell it on his behalf.
then will this qualify as supply? wil gst apply?
if yes on what value as basically X is not selling goods to his agent Y but only sending it to them.
will agent also require to get himself registered?
regards
shivani
prasad Nilugal
(3914 Points)
Replied 14 July 2018
Shivani
(Learner)
(1881 Points)
Replied 14 July 2018
Dear Prasad
thanks
my question to u is that in my example agent is selling goods on principal behalf,
So who will issue invoice to the buyer ?
will it be considered as agent's outward supplyor principal outward supply?
how will billing take place?
regards
shivani
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 15 July 2018
THERE ARE TWO TO WAYS SELL THROUGH AGENT :
1. BILL IS RAISE BY SUPPLIER TO HIS CLIENT, AGENT TAKES THE COMMSSION FROM SUPPLIER FOR MANAGING SUPPLIES
2. BILL IS RAISE BY SUPPLIER TO AGENT & AGENT FURTHER ISSUE HIS BILL TO CLIENT
AS TO ABOVE SAID CONDITION LETS TAKE 1ST CONDITION: ACCORDING TO SECTION 2(13) OF IGST ACT , INTERMEDIARY IS AN AGENTWHO ARRNAGES OR SUPPLY GOODS & SERIVES BETWEEN TWO OR MORE PERSONS, BUT INTERMEDIARY SHOULD'NT SUPPLY GOODS OR SERVICES ON HIS OWN ACCOUNT. SO IN THIS CASE AGENT HAS TO BE REGISTERED ONLY IF HIS TURNOVER (COMMSSION) EXCEEED 20 LAC
AS PER 2ND CONDITION : AS PER SECTION 2(5) CGST ACT "AGENTS" MEANS A PERSON INCLUDING A FACTOR , BROKER, COMMISSION AGENT DEL CREDERE AGENT OR AUCTIONER OR ANY OTHER MERCANTILE AGENT , WHO CARRIES ON THE BUSINESS OF SUPPLY OR RECEIPT OF GOODS OR SERVICES OR BOTH ON BEHALF OF OTHER. SO SUCH AGENT AS PER SECTION 24(VII) CGST ACT IS COMPULSORY TO TAKE REGISTRATION
SO AS TO YOUR QUERY IF AGENT "Y" FALLS UNDER 1ST CONDITON THEN MATERIAL SEND BY X TO Y IS NOT SUPPLY & AS PER CONDITION 2ND, MR "X" THE PRINCIPAL WILL RAISE BILL TO HIS AGENT "Y", WILL BE TREATED AS SUPPLY
prasad Nilugal
(3914 Points)
Replied 15 July 2018
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 15 July 2018
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