GST on Foreign Commission

[Asked by Guest]

Hello,

I have a sole proprietorship company in New Delhi and receive commission as agent of foreign company. Here is how it work:

• A foreign company, which does not have any entity in India, let’s call it F, appoints me as an agent.
• I visit companies in India who are interested in the products of company F.
• Let’s say company A wants to buy product/services from company F.
• Company A will place order directly with company F and company F will ship to company A.
• Company F will send me commission to my bank account.

Questions Part 1:

• Will I come under the INR 20 lahks per year exemption slab?
• If yes then will it be from 1^st of April 2017 or from 1^st of July 2017?
• If not then do I have to pay GST for commission received before 1^st of July 2017 or I can use the earlier service tax exemption of INR 10 lakhs?

Questions Part 2:

• Let’s say the company F send me US$100 (just a figure) for marketing, like participating in trade show etc
• Out of this US$100 let say US$70 is spend for promotion of company F. So I am left with US$30. So do I have pay GST on US$100 (total amount received) or US$30 (which is left). The US$70 I have spend also includes the GST for Expo or business promotion and have the bill.

Thank you,

Best Regards,

SH

[Ramesh Kothari]

in both case either pre/post era of GST when u are under thresh hold exempted limit u r not coming under this preview either ST or GST

Ramesh Kothari

 

AI Summary

Threshold exemption shields small agents from GST on foreign-sourced commission receipts when turnover remains below the exemption limit.
An Indian agent receiving commission from a foreign principal will not fall within service tax or GST charge if the agent's receipts remain below the applicable turnover threshold; the respondent's advice treats the threshold exemption as excluding such receipts from tax liability in both the pre GST and GST periods and did not resolve gross versus net treatment of promotional pass through expenses.