Commission Received from Foreign Company Taxable under GST Act

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Commission Received from Foreign Company Taxable under GST Act
Query (Issue) Started By: - Harendra Singh Dated:- 30-10-2019 Last Reply Date:- 2-11-2019 Goods and Services Tax - GST
Got 6 Replies
GST
Respected Member. Good Afternoon! I have received commission from Exedia.com & Booking .com both company are foreign. Now my question is.. How to pay GST (IGST) on that commission. You .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... aware they have not paid to us GST. Suppose I received ₹ 10000 Commission received from them (without GST). 1. Can I pay IGST @18% from my pocket (10000* @18%=1800). Or 2. exclude 18% from this commission amount and paid Govt (8475*.@18%=1525). Can I obtain RCM on this case. (First I pay & then claim input (Reverse Charge). Kindly advise to me on urgent basis. Thanks & Regards, Hare .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ndra Singh Reply By Rajagopalan Ranganathan: The Reply: Sir, Please indicate for what purpose you are receiving commission from a foreign company? What is the nature of service provided by you? Reply By Harendra Singh: The Reply: Dear Sir, I am a travel agent & I have booked hotels from their online portals for my customers. In respect they have paid me commission direct in my account. Repl .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... y By Himansu Sekhar: The Reply: You acted as an intermediary. Tax is payable om 1000. It will be treated as cum tax value. Reply By Alkesh Jani: The Reply: Sir, In my point of view, the amount received by you is inclusive of Tax, therefore, Rule 35 of CGST Act, is applicable and you may pay tax as per formula given i.e. Tax amount = (Value inclusive of taxes X tax rate in % of IGST or, as the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... case may be, CGST, SGST or UTGST) ÷ (100+ sum of tax rates, as applicable, in %) Thanks Reply By Himansu Sekhar: The Reply: I make a correction. It will not be treated as cum tax value. It is available as itc. Under such circumstances there is need to collect the tax. The benefit of paying the tax is available as itc. You are not a service provider Reply By KASTURI SETHI: The Reply: I .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... agree with the reply at serial no.5 dated 1.11.19 above.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X