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Raw Ginger commission agents

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Ataur Rehman

193 Points Posted on 29 December 2022

dear experts, my query is Mr. A is agriculturist. Mr. B.(commission agent) purchase raw Ginger using the self purchase bill different parties in Karnataka. The total value of Ginger Rs 10 laks lakh. at the same day Mr. B sold the Ginger Mr. C by using his sale bill of Rupees value of Rs. 10 laks. Mr. B received amount his account including commission from Mr. C of Rupees Ten lakhs Twenty five Thousand. around yearly Transactions approximately may me 5 to 6 crore. Mr.B receive only commission. How is to be invoiceing in gst. how is to be treat in income tax for IT filing. pls suggest me.

Replies (1)

Elisa

1220 Points Posted on 29 December 2022

-> Mr. B need to pay GST on the commission he receives from Mr. C. If the commission is for facilitating the sale of goods, it will be subject to GST at the standard rate. If the commission is for providing a service, it will be subject to GST at the service tax rate applicable on the service being provided.

-> Mr. B's income from the commission he receives for facilitating the sale of ginger will be treated as business income for income tax purposes.