Turnover of Commision agent

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Transaction between 3 parties A B & C
A is service receiver, B is performing part of agent and C is service provider.

The case is that A transfer payment against service in B account and B after deducting his part of commission transferred the remaining amount in C account.

in view of GST which amount to be considered as T/o.
1)Amount credited in B account???
2)Amount of commission

plz suggest how it can be justified under GST

Thanks in Advance
Replies (6)
Here payment should be made to C- Service Provider, who raise the bill and C-Pay Commission to B, if B is registered than B also raise the invoice for commission.

TO: Amount transferred by A to C-definitely it's the case of Unregistered.
As registered person will transfer the amount to the Service Provider?
Dear what kind of service is being provided by C ?????

As B is received the payment on behalf of A from C , so the B will be Raising only commission bill to A ,

Hence the Turnover of B will be counts the commission he reced. & GST is payable by B is on commission only
It's just like travel agent service.
B will charge some amount from A as his commission, and will also provide a tax invoice to A. what will the amount that B will show as his Turnover.
The total invoice amount (ticket price + commission) or only commission amount.??

Also pls justify ur ans with relevant provision also.

 

 IF B IS TRAVEL AGENT THEN HE IS WILL RAISE ONLY COMMSSION BILL TO IATA - AIRLINE AGENCIES  & ALSO HANDLING CHARGES OR SERVICE CHARGES COLLECTED FROM CUSTOMER, SO IN THIS CASE THE TURNOVER OF B WILL BE COMMISSION RCECD.

 

 

Is it mentioned somewhere under GST law ?
Dear Kuldeep

As per Rule 32 CGST

As an alternate to GST payment in the above manner, rule 32 (3) of CGST rules, 2017 permits an air travel agent to discharge GST at fixed percentage of basic fare on which commission is normally paid by the airlines to the agent. In such a case, the effective value and the effective rate of GST is tabulated below:-Type of Booking : Dmestic , Basic Fare Assume : 100000, Effective Value : 5000 (5% of Basic Fare, GST Payable :900/- (18% of 5000/-)

In case of Internation Effective rate is 10% of Basic Fare

In case an air travel agent opts to pay GST on basic fare module, he is not required to pay GST separately on commission, if any, received from the airlines as well as service charges / booking charges / management charges from the customer / passenger.


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