Hi,
1. Yes. Section 24 of GST.
2. Yes.
3.Yes.
Liability under GST of Commission from Foreign Principal to Indian Agent
1.Is Commission received from a Foreign Company by an Indian Agent for arranging / facilitating imports into India by an Indian Customer liable to GST ? If sp under what section of IGST? 2. Rate applicable and the HSN Code of the Service to be quoted on the Invoice? 3 Is Total proceeds of Commission received from the Principal i.e Foreign company is Taxable and if so the credit on Input services is eligible to set off against the liability?
Asked 5 years ago in GST
Is this commission is income in the nature of services to the Principal or export of services not liable to tax? Place of Supply of Services and time of supply of Services? Commission is a percentage on the value of Imports received by Indian customer from Foreign company Kindly clarify Bharani Upadrasta
Asked 5 years ago
Is the Commission received is exempt from Tax as export of Services to the Principal Foreign company or Taxable in India? Place of supply of Services and time of supply of services and the category under which it is to be shown?
Asked 5 years ago
- Still there is ambiguity whether it is intra-state or inter-state?. You cam consider it as intra-state u/s 13(8)(b) and charge rate @18%. It is not an export of service. Place of supply is the loacation of the supplier of services.
Hi,
Hope you are doing well !
It will not be considered as export of services.
The same will be treated as intra state u/s 13(8)(b).
GST@18% will be applicable on it.
Location of supplier of services will be considered as place of supply.
Thanks & Regards,
Payal Chhajed
1. I was also looking to know the HSN Code of this service and the service it fits in 2. How could it be an intra-state transaction when the Service provider for receipt of commission is in India and the Principal foreign company to whom he is facilitating / liasoning with the Indian customer importing the goods and the receipt is in foreign currency. My doubt is it intra-state or Inter-state? Bharani Upadrasta, FCA Hyderabad
Asked 5 years ago
1) 9961
2) Please refer 13(8)(b)
Hi,
Yes it will be chargeable to GST @18% and it will not be treated as Export of Service.
regards,
Nikhil
First of all in course of intermediary service the place of supply is the place of service provider.
Second since it is for arranging imprts it is treated as inter state supply.
Thirdly the sac code for commission agent is 996111 or try the sac code 99.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. Thank you
Services falling under HSN / SAC Code 996111 are given in Notification No. 11/2017-Central Tax (Rate), serial no 5
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