Hi, We are Scientific Instrument supplier dealing in Imported Instrument also. Some of our customer open L.C directly in favour of our Foreign Principal. We get commission on it in foreign currency. We take help of some other companies also in getting the order and we pay them commission in Indian Rupee against their bill ( they charge 18% GST ) Our queries are 1. Can we deduct amount paid by us to other companies while depositing GST on commission received from Principal? 2. Can we claim ITC or adjust GST paid by us on commission received? Regards,
No you can net off the commission paid and received and pay GST on balancing amount, you have to pay GST on full amount received by you and you can claim ITC of GST paid by you to other companies.
Hope you find the above information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Dear Sir,
Hope you are doing well !
1. No, you can not deduct amount paid by you to other companies while depositing GST on commission received from Principal. you will have to pay GST on full amount received by you.
2. Yes, You can claim ITC but you can not adjust GST.
Thanks & Regards,
Payal Chhajed
Hi,
Please find below response to your queries:
1. No, you cannot deduct.
2. Yes you can claim ITC but you cannot adjust GST.
Hope that clarifies.
Companies to whom we are paying commission in indian rupee , they are depositing 18% GST. Can they also claim ITC or adjust this . Regards,
You are paying them commission, so they are the service provider, which ITC are you talking about which they can claim. One gets ITC for GST included in their purchase or expense.
They can claim ITC of GST which they have paid while purchasing any item or claiming any expense.
Hope you find it helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
- GST is applicable on the turnover/gross receipts therefore you can not deduct commission paid from commission received to arrive at the GST liability.
- Yes you can claim ITC of GST paid on commission expenses.
- Other company can claim ITC of the GST paid on the expenses incurred by them.
Thanks
They can claim ITC of the GST paid on the expenses incurred by them.
Regards,
Nikhil
Hi,
You can't deduct the commission paid to I din customers but you can definitely claim he ITC of GST paid on commission paid to Indian parties.
Suppose, you charged commission of 100 and 18 rs. GST. Further, suppose you pay INR 50 rs. as commission and 9 rs. As GST. In the above scenario, you will only need to pay effective GST of 9 rs. To government
Dear Sir,
Hope you are doing well !
Yes,they can claim ITC of the GST paid on the expenses incurred by them.
Thanks & Regards,
Payal Chhajed
Hi
The commission that you earn from the foreign principal is chargeable @18% GST. You need to create a monthly invoice for such commission income. It is an intermediary service provided by you. It is not classified as export of services.
You can claim ITC of the GST charged by the other Indian companies. Such services are input services for you.
Dear Sir,
1.No, you can not.
2. Yes, you can claim ITC of GST paid on commission.
Yes,they can claim ITC of the GST paid on the expenses incurred by them