16 May 2019
We 100% subsidiary Indian company of Foreign company. We have agency agreement with our Foreign company (parent company) to book orders in India and aboard & getting selling commission on fixed percentage. Also we are authorised dealers for our parent company products.
1. We are booking orders in India on behalf of our Foreign Company. In return Foreign company receives P.O Directly from Indian customer and export directly to Indian company. for this we are getting commission in Foreign Currency from our Parent company. Is it required to raise GST invoice on our parent company on selling commission.
2.Also under same Agency Agreement ,we are boking orders outside India on behalf of our Foreign company. Our parent company directly export the material to foreign customer based on PO from customer and get Money in foreign currency. Parent company will give selling commission to Us (its subsidiary company) Is GST applicable on invoice raised by subsidiary company on its parent companyfor selling commission.