hii
you have asked so many questions thus its not feasible to answer here, if possible book a call consultation, we will happy to assist you.
we have clients who run same kind of business in Delhi-NCR.
Online tutoring marketplace
I run an online tutoring marketplace under my Private Limited company where teachers list their classes for kids aged 3-18. The classes are held through online video calls ( zoom / google meet) that I manage for the teachers and parents. The teachers or my company decide and quote prices for the classes. Teachers may or may not have exclusive arrangement with the company. They are not employees of the company. The prices may be different for Indian and overseas learners. The teachers can be from India or overseas. My company has been formed just recently and is registered under GST. Teachers get a revenue share from the fees collected. I am just starting business and my turnover is less that Rs 10 lacs/ 20 lacs. Assuming teacher quotes price of Rs 1000 for a class. My questions are 1) Am I required to collect GST from parents @ 18% or only collect GST from parents where the teacher taking online classes is GST registered ? 2) I understand no GST applicable for overseas learners. However am I required to collect GST if payment for overseas learners is from Indian bank account / credit card ? 3) If I collect GST from parents where teacher is GST registered, am I required to transfer GST collected to the teacher ? 4) Can I set off the GST collected from parents / teachers against GST payments by company ? 5) I understand the class fees quoted to parents can be all inclusive of GST but my invoice to them should state the amount and GST collected separately. Please confirm. 6) Am I required to charge GST on the commission amount that I charge teacher from the sale of class ? 7) Am I required to charge GST on handling fees ( different from commission) that I charge teachers or parents ? 8) Am I required to deduct TDS @10% before transferring portion of class fees to teacher/s account ? 9) Are my teachers required to register under GST or they will be exempt from obtaining GST registration, provided their aggregate annual turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K).? 10) Do I need any specific registeration ? ( TCS ?) 11) Do I have to collect TCS from teacher/ parent and on what amount and what percent? 11) Which GST returns will be applicable for me with due dates ?
Asked 3 years ago in GST
Dear Sir,
Hope you are doing well !!
We have handled such cases before.
We may assist you in entire procedure.
It is advisable to take a phone consultation for detailed discussion.
(This is not a follow up question) . I want to get answers in writing and get on a call if needed . 1 hour of committed time has already passed since I made the payment and I have not received responses. If any of my questions is not clear , please let me know. Please advice the next step. I can be contacted on [deleted].
Asked 3 years ago
Right
1 yes you have to collect and pay tax on every income/receipt, does not matter our teacher is registered or not.
2 in case of export of services GST effectively zero, but in other cases you have to collect gst
3 yes you have to pay gst to teachers as per their invoices.
4 yes we have to setoff input gst against output gst
5 yes you are right as per GST Act 2017, GST amount have to mention on invoice with other mandatory fields.
6 it depends on exact business model
Hi,
As per the information provided by you, acc. To me you are falling under the definition of E commerce operator and you are mandatorily required to get yourself registered under GST irrespective of the turnover.
You are acting as an intermediary and facilitator of this transaction and basically collecting the payment on the behalf of the teacher. i am assuming that in this case that you are issuing the invoices directly to the parents and teachers are just providing their services and raising the invoices to your company and not the parents directly and my opinion would be based on this only
1.) You are required to collect GST from the parents and teachers if they are registered under gst will be issuing tax invoice in the neame of your company and you will be taking the credit of that. This is basically that your company is providing the services to your clients and teachers are hired in their professional capacity.
2.) You have to furnish letter of undertaking for that purpose if you wish to provide services overseas and this hardly makes any difference from which bank account payment is being made. For GST, the nature of the transaction is to be examined.
3.) No as already discussed teacher will raise tax invoice to you and you will be taking the credit of the same and disbursing the net gst to the government.
4.) Yes there is no bar in setting off that payments
5.) It is optional, you can raise an invoice inclusive of the tax, since the parent is not going to avail the credit of the GST it hardly matters if we donot show gst separately in the invoice
6.) Now, this you have to see that whether it a revenue sharing model or a commission model. If it is a commission model and teacher is directly billing to the parent then scenario will altogether change and you have to charge gst on the commission amount.
7.) Yes, you have to charge gst on handling charges also
8.) The rate of TCS is 1% and it is TCS not TDS, please keep that thing into consideration and it is only collected from those teachers whose service value exceeds 5 Lacs otherwise not applicable
9.) Yes teachers are exempted from registeration till they cross the thresh hold limit ad the case may be.
10.) Yes you need to register yourself as Tax collected Supplier
11.) I have already explained in point no. 8 kindly refer that
12.) GSTR8(10th of the next month), GSTR3B(20th next month), GSTR1 (11th of the next month).
Hope you like the consultation.
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Thanks & Regards
Hi,
Post GST registration, you are required to collect GST on all the revenue invoices raised by you in the name of company.
Thanks
Damini
I am still not very clear on the business model so it would be better to make you understand the tax situation. Are you the owner of the videos and other thing and how do you disburse the amount collected.
Plus there are too many questions.
Plus frankly you are paying to the website the experts don't get anything to answer unless you book phone consultation.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.
Thank you.
1) GST will have to be collected from all parents.
2) If payment is received in INR GST will be applicable.
3) Teacher will raise the bill with GST and you can avail credit for GST paid on bills raised by teachers.
4) GST collected from parent will be your output liability and GST paid to teacher will be your input credit.
5) Your invoice may or may not mention GST seperately.
6) What is the nature of handling fees.
7) Yes TDS will be applicable if the payment exceeds 30K in a FY.
8) It is not mandatory for teachers to obtain registration. The exemption limit will be 40L as it is covered in services.
9) TCS will not be applicable.
10) GSTR 3B and GSTR 1 will be applicable to you.
This type of business model is termed as electronic commerce and you are acting as e-commerce operator.
1. You are required to collect GST from teachers only on the market place fees @18%.
2+3. GST to be collected from teachers and not from learners.
4. Yes you can set off with the ITC paid on expenses incurred for business purpose.
5. It is advisable that the amount should be credited in the teachers individual account through integration with any of the payment gateways. Don't raise invoice to parents from your portal and collect payments. In this way, you can avoid TCS compliance.
6+7. All charges by you to teachers will attract GST. Raise Invoice to teachers.
8. Yes TDS@10% assuming status of legal owner of the business is resident.
9. It is their liability. You should not worry about it.
10. Refer point no.5
11. GSTR- 3B and 1
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