TDS applicability on Policy Payment by mediator

This query is : Resolved

Raghuvar Singh (Querist)
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24 November 2021 M/s ABC Pvt Ltd selling M/s XYZ Insurance Ltd health insurance policy to retail customers in Market. M/s XYZ Insurance Ltd give commission to M/s ABC Pvt Ltd. M/s ABC Pvt Ltd collect the premium from individual customers.
1. M/s ABC give a advance amount to M/s XYZ, against this Insurance company issued policy to M/s ABC customer and deduct the premium amount from advance deposit.
2. M/s XYZ Insurance Ltd not issued any invoice to M/s ABC Pvt Ltd. Insurance company issued policy documents, receipt and invoice in the name of customer.

Query: Is TDS applicable on advance payment made to M/s XYZ by M/s ABC Pvt Ltd. ?
Query2: Any GST liability arise on this transaction?

thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 November 2021 1 TDS not applicable on such payment.
2 GST not applicable on this advance payment.
GST applicable on insurance premium and commission paid.

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