I have a sole proprietorship company in Bangalore and receive commission as representative of agent of a manufacturing company located in United Kingdom. Here is how it work:
· The UK manufacturer which does not have any entity in India, let’s call it “MANF”, appoints me as a representative in India
· I visit companies in India and promote products of company “MANF”. i.e., marketing service to foreign company
· Let’s say company in India “AAA” wants to buy products of company “MANF”. “MANF” don’t supply any products directly to “AAA” but redirect them to a stocking distributor “DISTI” in Singapore.
· Company “AAA” will place order directly on “DISTI” and imports the products on their own and everything is taken care of by them only. No way I am involved in the sales activity.
· “DISTI” in Singapore sends a report every month what they sold into India.
· Based on the value of products sold into India by the “DISTI”, the “MANF” with whom I am associated sends a fixed percentage of commission into my Bank account in US$.
Questions:
· Will my service is export of service with zero tax
· Will I need to register under GST ?
· Will I come under the INR 20 lakhs per year exemption slab?
· If I earn Rs. 10 lakh per annum and pay 18% GST, in what way I am better it would come to a huge amount Rs. 1.8lakh. It is better of earning Rs. 10 lakh for working for a company and pay the normal income tax.
I appreciate your valuable feedback
Thank you,
Best Regards,
YOGEESH
CAclubindia
