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GST TDS Impact on Sales Commission

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Zeeshan Haris

65 Points Posted on 31 May 2022

1. Is it compulsory to take GST registration for Individual Brokers/Commission Agent irrespective of GST registration limit of 20/40L?
If compulsory and not registered liability is on agent or receiver?

2. Is RCM applicable for Commission Paid to unregistered individuals by registered entity?

3. TDS Rate for Indenting Agent/ Brokers/ Commission Agent (for wholesale clothing) 5% 194H?

4. TDS Limit of Rs.15000/- is applicable to Income Tax Audited Individuals or only for under 1cr non-audit?

5. Is TDS Limit of Rs.15000/- is applicable to non-audit Sec 44AD individuals? or can make payment in excess of Rs.15000/- upto what limit?

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Quick Summary

This discussion explores the Goods and Services Tax (GST) and Tax Deducted at Source (TDS) implications for sales commission, specifically for individual brokers and commission agents. Key questions cover mandatory GST registration regardless of turnover limits, the applicability of Reverse Charge Mechanism (RCM) for payments to unregistered agents, appropriate TDS rates under Section 194H, and how TDS limits apply to audited and non-audited individuals, including those under Section 44AD.