GST on Foreign Commission, Goods and Services Tax - GST

[Sahil Sehgal]

Hello,

I have a sole proprietorship company in New Delhi and receive commission as agent of foreign company. Here is how it work:

• A foreign company, which does not have any entity in India, let’s call it F, appoints me as an agent.
• I visit companies in India who are interested in the products of company F.
• Let’s say company A wants to buy product/services from company F.
• Company A will place order directly with company F and company F will ship to company A.
• Company F will send me commission to my bank account.

Questions Part 1:

• Will I come under the INR 20 lahks per year exemption slab?
• If yes then will it be from 1^st of April 2017 or from 1^st of July 2017?
• If not then do I have to pay GST for commission received before 1^st of July 2017 or I can use the earlier service tax exemption of INR 10 lakhs?

Questions Part 2:

• Let’s say the company F send me US$100 (just a figure) for marketing, like participating in trade show etc
• Out of this US$100 let say US$70 is spend for promotion of company F. So I am left with US$30. So do I have pay GST on US$100 (total amount received) or US$30 (which is left). The US$70 I have spend also includes the GST for Expo or business promotion and have the bill.

Thank you,

Best Regards,

SH

Posts / Replies

[Ramesh Kothari]

in both case either pre/post era of GST when u are under thresh hold exempted limit u r not coming under this preview either ST or GST

Ramesh Kothari