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Sales Commission paid to employees

02 October 2017

should we pay GST on RCM for sales commission paid to permanent employee of the company if we pay the commission on monthly or yearly basis and if we have to pay what is the HSN/SAC code and what is the rate of GST

Thanks in advance

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4 Replies

Alikoya (72 Points)
Replied 02 October 2017

Monthly commission to permanent employee will not treat as rewards. in this case. RCM not required and not permissible. see Notification no.13/2017 dated.28/6/2017. You are giving the commission from the taxable amount. No double tax permitted.

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Vipin Kumar (127 Points)
Replied 03 October 2017

sir if we pay the commission amount quarterly once or yearly once will it be calculated under RCM

Alikoya (72 Points)
Replied 03 October 2017

No RCM. basically your employees are not coming under professional like brand ambassador, lawyer,consultant, share holders, RCM is mentioned for such category employees.