Hi
I am a Trader in stock market, recently few of my friends who are also traders and myself started a company. We are now trading in collaboration with stock broker on a profit share model with 80-20%. So we need to transfer 20% as brokrage to stock broker which comes with 18% GST.
Example we made around 20 Lacs then we need to give 20% of 20Lacs = 4Lacs + 18% GST on 4 Lacs. This is no client vendor relationship, rather its a relationship on profit share model. There is one solution of forming another company with the broker, however we do not want to do that. How can we avoid GST in this case.
Regards
Biplab
CAclubindia
