Hi All
There is a website which will be acting as an agent between companies and professionals ( Information Technology ) . Both of them register through the website and avail the professional service through the website. Website will be collecting the payment from companies and transferring to the professionals after deducting the commission.
Below is my current understanding
1. Website make payment to professionals after deducting the TDS @ 10%
2. Website then charge it's commission @ 18 % GST and attach the professionals service as a debit note for reimbursement
3. Companies will be deducting the TDS over the commission amount @ 5 % and make payment to the website
My question is
1. Are the above understanding of mine is correct ? If now what should be correct approach by law ?
2. Is it legal to use Debit note in this case ? Is there any tax ( GST ) applicable on the Debit Note ?
3 If the companies will be making advance payment , Do they need to deduct TDS at the time of payment ? Or can it be adjusted at the month end ?
4. Is TCS applicable for the professional services ?
CAclubindia
