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Collection agent impact

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ssubramanyam subbus

54 Points Posted on 26 April 2020

Mr. A is providing recruitment agency service XYZ Pvt Ltd. every month Mr. A will rise invoice to XYZ Pvt Ltd by charging GST.

PQR pvt Ltd will collect the amount from XYZ pvt on behalf of Mr. A, by charging commission to Mr. A

let me know the what are the compliance PQR pvt Ltd should follow.

1. GST is required to charge on amount received from PQR Ltd.

2. TDS amount need to be deducted on collection amount return to Mr. A

Replies (3)

Quick Summary

This discussion clarifies the compliance obligations for a collection agent, PQR Pvt Ltd, acting on behalf of a recruitment service provider, Mr. A. It addresses whether GST needs to be charged on the collected amount and confirms that TDS must be deducted on the amount returned to Mr. A. The transaction is deemed legal if properly documented with invoicing and timely filings.

PRAVIN AGRAWAL

PROPRIETOR

56 Points Posted on 26 April 2020

Dear Sir,

1) to charge gst, you need to clarify the point of taxation rules first. Your first query is unclear as gst is chargeable on the point when service is given.

2) yes tds amount needs to be deducted

For more information, kindly drop email to capravin87 @ gmail.com