Gst on commission from company outside india

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Dear Sir/Madam,

I am working as a commisson agent for a company in Europe.

I help them in selling the product in India. They submit the offer, Customer place the order on Principle directly. Principle supply the goods & collects the money. In return they pay me commisson on it.

Now under export of services

  1. Export of services’ means the supply of any service when,–
  • the supplier of service is located in India;   - Yes I am located in India
  • the recipient of service is located outside India;  - Yes the company is located in Europe
  • the place of supply of service is outside India;  - Yes I supply service to priciple not to customer in India.
  • the payment for such service has been received by the supplier of service in convertible foreign exchange; and--- Yes they pay in EURO
  • the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in Section 8 of IGST Act  -  Yes we are not related.

So should i required to pay GST on commission i receive from them or submit letter of undertaking to tax authority?

Regards

Yogesh

 

 

Replies (1)

Hi Yogesh,

You need to pay IGST in this case.it is called as "intermediary services"

Section 13 of THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017,

(13) “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account;

I have given link https://www.cbec.gov.in/resources//htdocs-cbec/gst/igst-act.pdf;jsessionid=FC7CB38850CFD12C895925E3BE933449

Go and Study it let me know anything is there to know more you


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