Clarification on advertising agency billing format

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This query is : Open

venkatanarasimharao murala (Querist)

13 August 2017 Dear sir/madam

1.Our company is an advertising agency engaged in the activity of publishing ads in news papers.
2.publications are charging gst@5% of net taxable amount from us after agency commission .
3.In what way we have to bill to Client .
4.Weather we have to collect Gst @ 5% or 18% of Commission received to our agency or both
at preset we re giving bills to client as for example as follows:
Goss Bill amount 10000
Less Dis @10% 1000
Net amount 9000

Publication Gst 425
(10000*85/100*5/100)

Agency GST 270
(10000*15/100*18/100)
on Commission received

Total 9695
Please guide we on this issue.

CA Suresh Jain

CA Suresh Jain (Expert)

13 August 2017 Whether invoice mentions about the full value of advertisement and commission payable to you is deducted therefrom or invoice is made by the Newspaper agency only for net cost of advertisement?
N Jain
group.blr@gmail.com

venkatanarasimharao murala

venkatanarasimharao murala (Querist)

13 August 2017 thank you for your reply ,
Some News papers Specifically mentions as agency discount (i.e 15%)in their invoice and collect Gst @5% after discount amount .and sends the invoice to us

CA Suresh Jain

CA Suresh Jain (Expert)

13 August 2017 It looks that the Newspaper is not paying any commission but charging a lower price for adv. from you and you are also billing on full value. In view of this GST @ 5% is applicable.
N Jain
gourp.blr@gmail.com

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