B2B Travel Agent

[sarang takalkar]

Respected,

When travel agent deals in B2B category, there is double taxation

Supplier pays GST and again the agent pays GST on total amount.

Is there any clarification ?

thanks,

[DR.MARIAPPAN GOVINDARAJAN]

Supplier pays tax the supply provided by him. Agent pays GST for the commission obtained for his service rendered to the principal. The principal will take input tax credit on the tax paid to the commission to the agent. What is the doubt in it?

[KASTURI SETHI]

I support the views of Dr.Govindarajan, Sir. I further express that tax is required to be paid on value addition by the agent and not on full amount. Hence no double taxation. No need to add further as already the matter has been crystal clear by Dr.Govindarajan, Sir.

[Ganeshan Kalyani]

As rightly replied by Sri Mariappan Sir and Sri Kasturi Sir, the tax is on the value addition only and not on the entire amount.

AI Summary

Value addition taxed: agent pays GST on commission while principal may claim input tax credit.
The supplier is liable to tax the supply it provides and the agent is liable to tax only the commission earned for services to the principal; the principal may take input tax credit for the tax charged by the agent. GST is levied on value addition, so the agent's tax is confined to the commission and does not tax the entire supply value.