Gstfor commission agent

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consultant
66 Points Joined July 2011

Please help me to understand the aplicability of GST on a Commission Agent.

My client who is registered under GST, ia a software development company. Now, he has engaged sales team in different cities who bring business to my client and my client use to give 10 % commission on whatever busiess was brought by his team.

Now, under GST, how that comossion agent should be paid their commission?

Should Commission agnet need a GST registration number and raise a invoice to my client?

Should any TDS should be dedcuacted while paying commission to the team?

 

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On 27 November 2017 at 16:55 Report
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Student CA Final
11857 Points Joined May 2015
Tds should be deducted @ 5% and if his turnover cross the prescribed limit rs 20 lakh then should take gstin... And raise commission invoice charging gst rate @ 18%
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On 27 November 2017 at 19:02
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Student CA Final
11857 Points Joined May 2015
It is advisable to take gstin no... And you have to deduct tds @ 5%
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On 27 November 2017 at 19:03
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Student CA Final
11857 Points Joined May 2015
Now rcm has been suspended that's why u r not required to pay gst @ 18% on rcm basis... Just deduct tds @ 5 %
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On 27 November 2017 at 19:05
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consultant
66 Points Joined July 2011

"Now rcm has been suspended that's why u r not required to pay gst @ 18% on rcm basis... Just deduct tds @ 5 %"

 

Is that mean, Agent need not to raise us any invoice? We merely has to  make payment deducting TDS 5%
 

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On 27 November 2017 at 19:51
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Student CA Final
11857 Points Joined May 2015
Yes just deduct tds and make payment... If commission agent turnover mote than Rs 20 lakh then he should be registered or he can voluntary take gstin... Bdw commission amount is how much generally
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On 27 November 2017 at 19:55
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consultant
66 Points Joined July 2011

Amout would range between 2500/- upto 15,000/-. Depening upon the services he sells.

 

 

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On 27 November 2017 at 19:57
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Student CA Final
11857 Points Joined May 2015
Just deduct tds and make the payment and book commission expenses... If commission agent wish to take gstin no then he can take... Then he issue invoice to urs company... Otherwise no requirement now and even rcm is also not applicable now
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On 27 November 2017 at 20:01
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consultant
66 Points Joined July 2011

Now, if he has got GSTIN and raised COmission Invoice to us, should we

1. Pay invoice amount including GST

2. Or pay commission amount deducting TDS @ 5%.

 

 

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On 27 November 2017 at 20:31
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Student CA Final
11857 Points Joined May 2015
You should pay commission along with gst @ 18% and get itc of that 18%...no loss at ur end and make payment after deducting tds on commission excluding gst amount i. e taxable amount
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On 27 November 2017 at 20:35
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consultant
66 Points Joined July 2011

For eg:

Original Service invoice= 2,50,000

Commission @ 10%= 25,000

The agent raises inoice= 25,000+18% GST= 29,500/-

This means have to take payment of 29,500/- to him and get ITC of 4,500/- ?

Now, I need to understand your statement of

"...make payment after deducting tds on commission excluding gst amount i. e taxable amount...."

 

 

 

 

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On 27 November 2017 at 20:41
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Student CA Final
11857 Points Joined May 2015
Tds should be deducted on 25000 @ 5% i. e 1250
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On 27 November 2017 at 20:46
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Student CA Final
11857 Points Joined May 2015
Yes itc of rs 4500 and make payment 29500-1250 to commission agent
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On 27 November 2017 at 20:48
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Student CA Final
11857 Points Joined May 2015
Hope ur all queries now resolved??
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On 27 November 2017 at 20:52


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