We are agent of one MNC company and bring customer for them. Company sell goods to customer and customer have to pay within 10 days of purchase if not we have to pay on his behalf and afterwords collect money from customer with interest on purchase amount.
So my doubt is whether we have to collect GST on the interest amount or not.
Thanks.
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interest on late payment
Replies (2)
No need...
GST not applicable on Interest...
But this interest is not on loan taken or given. This amount arises out of the transaction done by company and customer and there is no any agreement between agent and customer which enable agent to charge interest.
One another thing we called it as interest but what is the definition of interest.
Please reply.
One another thing we called it as interest but what is the definition of interest.
Please reply.
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