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Sales comissiom

12 October 2023

our one company is in India, and sister company is in abroad

we pay commission to our abroad sister concern for achieving sale target.

can on this comission we are liable to pay gst on rcm basis and what about tds.

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6 Replies

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 13 October 2023

If the contract between the companies is principal to principal basis then the services may be considered as import and rcm will be payable.

2 Like

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 13 October 2023

Yes I agreed to Mr CA Altamush Zafar,

@ Mr Rajkumar,

RCM is applicable for the commission paid to abroad even if sister concern..

sabyasachi mukherjee (27593 Points)
Replied 13 October 2023

Abroad sister means

Rajkumar Gutti (612 Points)
Replied 13 October 2023

In India name is ABC Pvt.Ltd & in name is ABC LLC , we are paying 10% commission on their total expenses . For this purpose we executed agreement.
can this service consider as import service
what is mean by principal to principal
what about Tds

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 13 October 2023

Originally posted by : sabyasachi mukherjee
	Abroad sister means

Yaarukitta pa ketkarey...

Asking to....???

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NARENDRA (ACCOUNTS MANAGER) (2081 Points)
Replied 16 October 2023

Originally posted by : Rajkumar Gutti
	In India name is ABC Pvt.Ltd & in name is ABC LLC , we are paying 10% commission on their total expenses . For this purpose we executed agreement. can this service consider as import servicewhat is mean by principal to principalwhat about Tds

Yes, I think you will have to deduct TDS also .