Commision earned

Dear Sir,

On commission services, the applicable rate of GST is 18%. Further, on GST bill relating to a commission value of a supply, TDS is also deductible. TDS will be deducted on the Gross amount, exclusive of GST.

You need to pay GST in India because in case of commission agent/ intermediary place of supply would be place of supplier.

Other than above you just need to pay income tax on this amount.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hello,

You would be required to pay GST on the commission earned at the rate of 18%(IGST). Other than GST, Income TAX would be payable by you on your net income form the business as per slab rates.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

You are basically providing service to the USA company. With properly managing your billing methods we can show this service as Export of service. In that case you will not have to pay GST on this after taking a certificate.

Also TDS will not be applicable in your case.

We can talk in detail over phone consultation or you can connect catejasyshah @ gmail

Please rate this answer 5, if you find this helpful.

Hi,

Sorry for my previous answer.

Tds is not applicable in your case.

You need to pay the taxes on the same as per applicable slab rate. 

Hi,

You will have to pay charge GST @18% to your USA company. you need to register immediately for GST as there is no threshold limit for GST registration in case of intermediary services.

Further, you will have to pay income tax on the profit earned from commission income.

Yes, even if both the parties are outside India, GST will be applicable as this situation is not considered as export in GST.