Declaring commission for export consignment

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This query is : Resolved

Sunil Pandya (Querist)

24 August 2018 Dear Expert
I want to know how to declare that invoice presented to custom authority under GST contains commission to be paid to overseas agent. I am diploma in export-import during excise and sales tax regime it was informed to me that it is not necessary to declare commission on invoice to buyer and even to customs, but on shipping bill and GR/SDF form rhe commission to be paid have to declare.

Now Under GST Only Invoice Cum Packinglist or Invoice+Packing List have to made, should same can be declared on covering letter to customs? giving detail that attached invoice contain commision to overseas agent?

I also want to know what is current rbi rule for maximum commission can be paid? 12.5% or 15% or more without any prior permision from RBI

I also want to know how to declare Present Market Value in GST Invoice? Is it Necessary?

Rajesh Kumar

Rajesh Kumar (Expert)

24 August 2018 Let us try to understand the transaction.
GST Invoice will show transaction value between supplier and overseas buyer. Say your transaction value is Rs. 100, the commercial invoice will show a value of Rs. 100. It also means that the overseas buyer will pay you Rs. 100/-. You expect a foreign remittance of Rs. 100/-
Shipping bill will show FOB value. Normally it is same as invoice value, but in certain situation it can differ.
Amount if commission is required to be declared on GR/PP/Softex and required to be accepted by Custom authorities/departments. If it is not declared, remittance can be allowed by the authorised dealer if there is a valid agreement between exporter and agent. Rate of commission should not exceed 12.5%.

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