A sole-proprietor firm is goint to take a franchise of a share broking company (for example - the company name is Edelweiss). Here, Edelweiss would give the back office support, would provide its terminal through which trading to be done etc.
Now the queries are:
1) Whether this nature of supply tantamount to "Supply of Service on behalf of Principal" under GST and such sole-proprietor has to obtain GST registration mandatorily irrespective of the turnover limit,i.e., Rs.20 Lakh limit?
2) If yes, then What will be the Turnover for such Sole-proprietor for the purpose of his P&L A/c as well as GST Return purpose? I guess, it would be the commission to be received from Edelweiss. Confirm please, if I am wrong.
CAclubindia
