GST on sales commissions for agency.
Ours is a Pvt Ltd company. We are planning to take up agency to sell a manufacturer's product. The manufacturer will directly invoice the end user customer and give us a percentage of commision. Please clarify the below clarifications.
1. Are we to raise an invoice for the commission received. If raised are we to add GST for the commission. If there is GST will the commission is inclusive of GST or to be charged as additional.
2. We are thinking about two options of sales invoicing with the manufacturer. First option is the manufacturer directly invoices the end user customer and pay us commission for bringing the order. Second option is the manufacturer invoice us for the product and inturn we invoice the customer from our side and claim the commision from the manufacturer. Kindly explain which option is beneficial to us.
Thanks & Regards.
Krishna Kumar. more
1. Are we to raise an invoice for the commission received. If raised are we to add GST for the commission. If there is GST will the commission is inclusive of GST or to be charged as additional.
2. We are thinking about two options of sales invoicing with the manufacturer. First option is the manufacturer directly invoices the end user customer and pay us commission for bringing the order. Second option is the manufacturer invoice us for the product and inturn we invoice the customer from our side and claim the commision from the manufacturer. Kindly explain which option is beneficial to us.
Thanks & Regards.
Krishna Kumar. more
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I had already replied through app. Pl check Get Outlook for iOS ________________________________ From: Krishna Kumar Sent: Tuesday, February 6, 2018 6:15:45 AM To: mmk302411@live.com Subject: "GST on sales commissions ..." more
Feb 07
Dear krishna kumar As far as the STATUTE CONCERNED, you may follow 100% the answer given by shashidharan B, which is of correct and elaborative, where as you consult your senior for a STRUCTURED AND WELL PLANNED costing in terms of MRP and your own discounts to buyers at the point of increase in such transactions more
Feb 06
Dear Krishna Kumar 1. If you act as a commission agent, GST has to be charged on the commision you claim mentioning your service code and GST in the bills. For example order value sy Rs.2 lakhs.Commission rate say 10%.Then commission is Rs.20000. Then IGST/CGST/SGST at 18% = Rs.3600.Your invoice has to be for Rs.23600.You remit Rs.3600 as GST to Government. 2.If you are acting as a reseller,then also you need to charge GST with GST number and HSN code of the product in Invoice. The customer raises an invoice on you for Rs.2.00 lacs with GST at 18%(if GST is 18% for the HSN code of the product) ie Bill for Rs.200000+ GST RS.36000. This is your purchase.Then you raise a Sales Invoice on end user for Rs.220000+ GST Rs.39600 ,total Rs.259600. You remit to Government net GST Rs.3600 (39600-36000) Hope it is clear. I have assumed the GST of the product as 18%.If it is lower or higher also,your liability will be Rs.3600 only more
Feb 06
Dear Krishnakumar ,You are most welcome.In case of any GST related issues you can contact me in 9176601908.just sms before your first call more
Feb 12
Dear Krishna Kumar
It depends on the terms with your principal supplier.If they permit you to quote higher rates than the commission payable and the payment terms are favourable(Cash out flow subject to cash inflow) and if there is a scope for getting better rates from your contacts then reseller business will bebetter than agency. more
It depends on the terms with your principal supplier.If they permit you to quote higher rates than the commission payable and the payment terms are favourable(Cash out flow subject to cash inflow) and if there is a scope for getting better rates from your contacts then reseller business will bebetter than agency. more
Feb 07
