I am running a small travel agency. It works as sub agents for other travel agents. Booking of tickets are done for passengers through the online portal provided by agents. We are not raisning any bills now to customers. Also our agens are not issuing any bills to us. Let me please know the procedure to be followed in billing and collection of GST. My income comprises of commission given by the agents and service charges levied on customers. We transfer funds to our agents online. Will the amount transferred has to be shown as our turnover. I shall give an example.
1. During August 2017 suppose we have transferred Rs, 10 lakhs to our agents
2. Out of this ticket for Rs.8 Lakhs has been issued by them during the month.
3. Amount of ticket issued for customer A is Rs,10300 and commission for us amount to rs.300/-. Thus we have to pay Rs.10000/- to the agent. We are not billed by the agent. only monthly statement account are provided to us. We charge additional 200/- as service charge. Thus the customer has to pay Rs.10500/-. do we have to bill the customer ? At what rate GST is to be collected and on which amount ? Is commission received from agent liable to GST ? What is the procedure to file returns ? Will the amount collected by us from customers amount to our turnover ? Please clarify
CAclubindia
