Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser

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This discussion clarifies GST and TDS provisions for businesses using commission agents in import and export transactions. It covers scenarios involving both Indian and European agents, detailing GST implications like Reverse Charge Mechanism (RCM) and forward charge, along with TDS obligations under various sections of the Income Tax Act. The advice also touches upon Input Tax Credit (ITC) eligibility, Place of Supply rules, and the necessary documentation like Form 15CA/15CB, aiming to provide a comprehensive guide for compliance.

Hukam Chand

Hukam Chand (Querist)

01 November 2026 Dear Expert,

I am running a business named ABC India Pvt. Ltd. We engage in both import and export transactions, utilizing the services of both Indian (resident) and European (non-resident) commission agents/professional service providers.

Could you please explain the applicable GST and TDS (Income Tax) provisions—along with standard Accounting Entries and Tax Payment Due Dates based on the latest notifications and circulars—using a real-time numerical example for the following scenarios?

Scenario 1: Import Transactions
When importing goods from Europe and Russia:

Indian Commission Agent / Professional: What GST (RCM vs. Forward Charge, any other tax, ITC eligibility) and TDS under the Income Tax Act (e.g., Section 194H/194J, any other section) apply when paying commission/service fees to an Indian agent?

European Commission Agent / Professional: What are the Reverse Charge Mechanism (RCM) GST implications (Import of Services, OIDAR/Intermediary rules) and TDS obligations under Section 195 (including DTAA benefits and Form 15CA/15CB requirements) when paying commission/service fees to a foreign agent located in Europe?

Scenario 2: Export Transactions
When exporting goods to international markets:

Indian Commission Agent: What are the GST (Taxability, Place of Supply rules, claiming ITC or refund) and TDS implications for commission paid to a resident agent assisting in exports?

European Commission Agent: What are the GST (Applicability of RCM on foreign intermediary services) and TDS (Taxability of foreign agent commission for services rendered outside India under Section 195 read with Circulars) implications when paying an overseas commission agent for export orders?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

01 November 2026 Indian Agents: Subject to Forward Charge GST (18%) with full ITC eligibility, and subject to domestic TDS (5% under 194H or 10% under 194J).

European Agents (Imports): Subject to 18% IGST under RCM (fully reclaimable as ITC) and evaluated for TDS under Section 195 based on PE/DTAA status alongside mandatory Form 15CA/15CB filings.

European Agents (Exports): Generally exempt from Indian TDS if services are performed entirely outside India, with standard RCM tracking for GST compliance.

Hukam Chand

Hukam Chand (Querist)

01 November 2026 could u eleborate any of example for import and export case as well as latest circular under gst

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