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commission on donation arranged for a trust

Manish Sakorkar (Managing Director) (39 Points)

15 July 2019

Hello,

I'm bringing donation of Rs. 5crore for a educational trust and trust is willing to pay me 10% commission (I.e. 50lakh). This will be paid to me after TDS deduction by trust.

I want to know, is there any limit for commission earning for individual or I need any commission license for this transaction? after TDS is deducted, rest of Income tax I will pay in my annual return, right ?

Does this transaction falls in any GST law as well ?

Please guide me.

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3 Replies

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 15 July 2019

there is no need of any license for such activities. You need to show it as your income while filing your income tax return and then pay whatever tax will be payable. Hope this is the only income you earned in the year so need not to take GST.

2 Like

Manish Sakorkar (Managing Director) (39 Points)
Replied 15 July 2019

I am into business and in my routine business I'm holding GST number... but this commission is my personal activity. I just wanted to reconfirm that there is NO relation between this personal income and my business income, right ? or if I take commission in my LLP firm account, it will effect anywhere on taxation part ?

1 Like