banner_ad

Is GST applicable on incentive paid to salesperson

834 views 1 replies

Scenario 1:
A company pays its sales person incentive or commission on monthly basis on the total monthly sales done by the sales person. This incentive or commission is paid over and above the salary. In this case is GST applicable on the incentive or commission being paid by the company to the sales person?

Scenario 2:

A company has appointed wholesalers or distributors in a certain state to sell its products. In order to acquire new customers the company asks such wholesalers or distributors to take orders of smaller wholesalers (the company would directly bill and ship the products to such small wholesalers) and the existing wholesalers or distributors would get a fixed commission from the company on the order procured by them of new customers. Is GST applicable in this case wherein the company is paying commission or incentive to its distributors or wholesalers on orders of new customers acquired by them?

Replies (1)
Scenario 1: the company paid incentive to employee gst is not applicable in case of commission paid to 3rd persion it's gross exceeding 20 lakhs gst is applicable ( in case of incentive u/s 192b in case commission u/s 194H TDS must be deducted)
scenario 2:
commission grater then 20 lakh gst registeraion must but both scenario Company not liable to pay any gst but TDS is must be deducted


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details