Collection on Behalf of Client

Vipul Sartan (1 Points)

24 June 2025  

I am offering a technology platform and related services to my client.

  • When my client’s customer (end user) makes a payment through my platform, the full amount is credited to my business bank account.

  • I then deduct my service fee, which is a percentage of the total amount (commission), and transfer the balance to my client.

  • My service fee is charged only when my client’s customer pays.

In this arrangement, I am collecting payment on behalf of my client, deducting my commission, and remitting the balance.

My questions are:

  1. Can I legally collect payments on behalf of my client in this manner?

  2. How is this arrangement viewed under GST law and other applicable regulations?