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Commission for Loan

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akshay Kumar

105 Points Posted on 22 April 2020

Sir, I am freelancer and contacts unknown person, whoever is interested in taking loan, i refer his contact details with DSA.
After loan sacntion, I receive 1% comm from DSA, and I charge 2-3% comm from the customer directly.

Here, I want to know.....whether taking comm from customer directly is illegal?

What should i mention in my invoice to customer for charging commission.

SAC code for the same to mention in my GST invoice?

Replies (5)

Quick Summary

This discussion explores the legality of a freelancer charging a direct commission to customers for referring loan applications to a DSA. It clarifies that charging commission directly is generally not illegal, especially when an invoice is provided. Advice is given on how to phrase the commission on the invoice, suggesting terms like 'Commission for Loan Sanctioned' or 'Consulting Charges'. The appropriate SAC code for GST is identified as 9961, with a reminder to include a declaration if the freelancer is below the GST threshold.