Gst on commission
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 July 2017
Dear Sir,
we are Travel Agent in ASSAM and receiving commission from Flightraja travels pvt ltd, Principals from Bangalore and our Commission is less then Rs. 10 Lac p.a...
Our queries are :-
1. Is GST Registration necessary for us.
2. On Commission who will paid GST ?
3. Principal / Airline they do not agree to give GST on Commission
4. Airline / Principal say that on Booking the will issue Direct bill to client not to us
on that case is we need to be Register on GST Where our commission is Less than 10 Lacs p.a ?
5. If Airline / Principal will issue Bill direct to Client than how we will issue bill to client ?
Kindly Suggest the Rule so that we can run our business smoothly.
we are Travel Agent in ASSAM and receiving commission from Flightraja travels pvt ltd, Principals from Bangalore and our Commission is less then Rs. 10 Lac p.a...
Our queries are :-
1. Is GST Registration necessary for us.
2. On Commission who will paid GST ?
3. Principal / Airline they do not agree to give GST on Commission
4. Airline / Principal say that on Booking the will issue Direct bill to client not to us
on that case is we need to be Register on GST Where our commission is Less than 10 Lacs p.a ?
5. If Airline / Principal will issue Bill direct to Client than how we will issue bill to client ?
Kindly Suggest the Rule so that we can run our business smoothly.
19 July 2017
1 GST registration not required for you.
2 Your principal will pay GST on commission.
3 Already they are paying GST and commission is part of it.
4 Airline / Principal on Booking they will issue Direct bill to client not to you in that case no need to be Register on GST and also your commission is Less than 10 Lacs p.a.
5 No need for you to issue any bill.
2 Your principal will pay GST on commission.
3 Already they are paying GST and commission is part of it.
4 Airline / Principal on Booking they will issue Direct bill to client not to you in that case no need to be Register on GST and also your commission is Less than 10 Lacs p.a.
5 No need for you to issue any bill.
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 July 2017
Dear Sir
Few More points to be Clear
1.Agent for Registered Principal registration is mandatory ?
2.Some Airline are not Giving us Commission on that case if we charged extra in the form of Transaction Fee from clients on that case did we require GST ? Where Including Extra Charge our Income is Less Than 10 Lacs
3.If GST Applicable on that case than what will be the Procedure of Billing issue to Clients ?
4.If Clients based from Assam and he needs booking from Delhi to Mumbai on that case did we needs to be Registered on GST ? Where Client provide us his GST at the time of Booking. or will it treat as Inter-state supply ?
5.Can we get your Contact Details ?
Few More points to be Clear
1.Agent for Registered Principal registration is mandatory ?
2.Some Airline are not Giving us Commission on that case if we charged extra in the form of Transaction Fee from clients on that case did we require GST ? Where Including Extra Charge our Income is Less Than 10 Lacs
3.If GST Applicable on that case than what will be the Procedure of Billing issue to Clients ?
4.If Clients based from Assam and he needs booking from Delhi to Mumbai on that case did we needs to be Registered on GST ? Where Client provide us his GST at the time of Booking. or will it treat as Inter-state supply ?
5.Can we get your Contact Details ?
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2017
Dear Sir
WE ARE WAITING FOR YOU REPLY
WE ARE WAITING FOR YOU REPLY
27 July 2024
Let's break down your questions one by one regarding GST on commission, airline transactions, and related issues:
### 1. Agent for Registered Principal Registration
**Is registration mandatory?**
Yes, if you are an agent working on behalf of a registered principal, you generally need to be registered under GST if your aggregate turnover exceeds the threshold limit of ₹20 lakhs (or ₹10 lakhs for special category states). This is because, as an agent, your services are subject to GST, and proper registration ensures compliance with tax laws.
### 2. GST on Transaction Fees When Commission is Not Provided
**If airlines do not give you a commission and you charge a transaction fee from clients, do you need to charge GST?**
Yes, if you are charging a transaction fee from your clients, GST would generally be applicable regardless of your total income. Even if your total income is below ₹10 lakhs, GST is applicable on the fees you charge for your services. You should charge GST on the transaction fee if you are registered under GST.
### 3. Procedure for Billing to Clients
**If GST is applicable, what should be the procedure for billing clients?**
If GST is applicable, you need to issue a GST-compliant invoice to your clients. The invoice should include:
- Your GSTIN (GST Identification Number)
- The client's GSTIN (if applicable)
- A description of the service provided (e.g., transaction fee)
- The amount of GST charged (at the applicable rate)
- The total amount payable
Ensure that the invoice adheres to the GST format and requirements specified by the GST laws, including mentioning the GST rate and the amount of tax charged.
### 4. GST Registration for Inter-State Supply
**If the client is based in Assam and you are booking flights from Delhi to Mumbai, do you need to be registered under GST?**
Yes, this would be considered an inter-state supply if you are providing services across state boundaries. For inter-state supplies, you are required to be registered under GST if your aggregate turnover exceeds the threshold limit. The client providing their GST number does not negate the need for your own GST registration if you are engaged in inter-state transactions.
### 5. Contact Details
**Can you provide contact details?**
I'm sorry, but I can’t provide contact details. However, I’m here to help with any questions or information you need. For personalized advice, especially regarding complex GST matters, consulting a certified tax professional or GST consultant would be a good idea.
Feel free to ask if you have more questions or need further clarification on any of these points!
### 1. Agent for Registered Principal Registration
**Is registration mandatory?**
Yes, if you are an agent working on behalf of a registered principal, you generally need to be registered under GST if your aggregate turnover exceeds the threshold limit of ₹20 lakhs (or ₹10 lakhs for special category states). This is because, as an agent, your services are subject to GST, and proper registration ensures compliance with tax laws.
### 2. GST on Transaction Fees When Commission is Not Provided
**If airlines do not give you a commission and you charge a transaction fee from clients, do you need to charge GST?**
Yes, if you are charging a transaction fee from your clients, GST would generally be applicable regardless of your total income. Even if your total income is below ₹10 lakhs, GST is applicable on the fees you charge for your services. You should charge GST on the transaction fee if you are registered under GST.
### 3. Procedure for Billing to Clients
**If GST is applicable, what should be the procedure for billing clients?**
If GST is applicable, you need to issue a GST-compliant invoice to your clients. The invoice should include:
- Your GSTIN (GST Identification Number)
- The client's GSTIN (if applicable)
- A description of the service provided (e.g., transaction fee)
- The amount of GST charged (at the applicable rate)
- The total amount payable
Ensure that the invoice adheres to the GST format and requirements specified by the GST laws, including mentioning the GST rate and the amount of tax charged.
### 4. GST Registration for Inter-State Supply
**If the client is based in Assam and you are booking flights from Delhi to Mumbai, do you need to be registered under GST?**
Yes, this would be considered an inter-state supply if you are providing services across state boundaries. For inter-state supplies, you are required to be registered under GST if your aggregate turnover exceeds the threshold limit. The client providing their GST number does not negate the need for your own GST registration if you are engaged in inter-state transactions.
### 5. Contact Details
**Can you provide contact details?**
I'm sorry, but I can’t provide contact details. However, I’m here to help with any questions or information you need. For personalized advice, especially regarding complex GST matters, consulting a certified tax professional or GST consultant would be a good idea.
Feel free to ask if you have more questions or need further clarification on any of these points!
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