12 August 2023
Please suggest a way where if I act as a broker for a sale of items by bringing seller n buyer together and helping them in finalizing a deal with a price negotiated by me. In all such cases I am entitled for a commission which is the difference between the seller price and the price I actually sold to the buyer. How I make a full proof agreement that my hard-earned commission is received in full after the actual sale? Kindly suggest a way and best practice including an agreement which can be used by me. Thanks
13 August 2023
This is not possible, as seller has to raise invoice on the buyer for the price agreed and GST charged on the price. It will be for a single price only and you will receive commission from both buyer and seller at a fixed percentage on selling price.
You have to buy and sell in case of different buy and sell price. Buying invoice should be in your name and selling invoice you have to make in the name of the buyer.
13 August 2023
Alternatively how about receiving payment in my bank account from end buyer and passing on the amount to the seller after keeping the commission. In that case how one will take care of GST because I have to issue invoice including GST to end buyer and also pay GST to the actual seller when I pay him for the actual sugar. Can the GST adjustments be done in the same day or period? Thanks
CAclubindia
