Brokerage income received from overseas to facilitate a deal

Hi, Please find answers to your questions as per my opinion:

1.) Should I receive the brokerage amount in my Savings account or Current account? .. Any of them should be ok but sinch it is business income, it is better to receive in current account


2.) If I get payment in current account, then would bank give us FIRC? Bank gives FIRC on request. You can check with your bank relationship manager before receiving payment

3.) What percentage of tax I have to pay? Since this will be construed as exports, GST will be NIL. However if the receipt amount is more than 20 Lakhs, you will have to register with GST, file LUT and file GST return showing this receipt as Zero Rated. Or pay GST and claim refund. Income tax will depend upon your total income, expenses, profit and slab applicable

Hi

1. As per my understanding it is better to open a current bank.

2. Yes 

3. You need  gst registration if your turnover cross 20 lakh.

Income tax applicable as per slab rate.

Dear Sir,

Hope you are doing well !!

1. A savings account is most suitable for people who are salaried employees or have a monthly income, whereas, Current Accounts work best for traders and entrepreneurs who need to access their accounts frequently.

So it would be better to go current account option.

2.Yes, you will get FIRC.

3. GST registration is mandatory for intermediary services without any threshold limit.

-Intermediary generally charge commission against the services provided by them.

-The commission income so earned is subjected to GST@18% and all the provisions of GST law is applicable accordingly.

- You need to issue an invoice to the company. If they are paying you a fixed amount and not paying GST in addition, you simply need to do reverse calculation of GST according to the amount so received.

-If you are working as sole proprietor (which is better then company) then income tax would be calculated on slab basis and not on flat rate i.e. 30%.

- Basically GST is a collection from customer and not from own pocket.It is upto you how to collect it from customer either by increasing the commission amount or charging GST separately on the current commission.

-In case there is no commission for a particular period, you will have to file NIL returns. GST shall have to be paid for the month in which invoice is made OR payment is received- whichever is earlier.

If you need any further assistance, please let me know.

We may assist you in entire procedure.

I think it should be P1001 (not 100% sure). Suggest you check with the banker itself before the submission of request giving the facts of the trade

1. You should receive in your current account preferably.

2. FIRC is must. You will have to take FIRC from bank irrespective of the fact whether money is received in savings/ current account

3. Income tax will depend upon your profit ( commission minus business expense) and your slab rate.

You will also need to ensure that you have all the relevant documents from gst perspective to claim this as exempt from gst.

The cide should be P1001.

- In current account only. If constitution of business is sole proprietorship then bank will ask GST registration first to open current account.

- FIRC is available for all foreign inward remittances.

- 18%

Hello,

1. Advisable to use the current account.

2. FIRC would be available in either case.

3. 18%

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

P1001

Receiving it in current account would be better as it is your business income.

Yes it would provide you FIRC.

It depends on what expenses if any have you incurred.

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

Thank you.

Hi

P1001

P1001

You have to pay Income tax as per your slab