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Gst on tranportation commission agent

564 views 1 replies

Jatin V Bhatt

Officer

32 Points Joined October 2010

My client is transport commission agent. He is arrange vehicles from sub brokers or lorry owners attached to us and supply the vehicles to transporters (GTA).

The transporter pays us the freight agreed. He is inturn make the payment to sub broker or lorry owner against a cut or commission.

Let's say he is hired a vehicle for 25000/- from a sub broker / lorry owner and supply to a GTA for 27000/-. The transporter pays us and we pay the sub broker / Lorry owner.

So we earn 2000/- which is our commission income. Our query is will the 27000/- amount be considered our turnover or not.

Please reply ASAP

Replies (1)

Aditya Agrawal

Student CA Final

146 Points Joined July 2015

GTA falls under RCM under section 9(4) of the Act. As far aa considering it in turnover is considered, I think it has to be taken in the turnover as it includes all the sales made by a registered person or a person required to be registered under the GST law.