TaxTMI 
TaxTMI 
A MANUFACTURING COMPANY HAD MADE EXPORT SALES TO LLC IN USA .THAT LLC IS ASKING SOME CONSIDERATION FOR INCREASE IN TURNOVER FOR YEAR ON YEAR . UNDER WHAT NOMINCLATURE THIS SHOOULD BE BOOKED .IS THERE ANY REVERSE CHARGE PAYABLE KINDLY CLARIFY
SALES PROMOTION EXPENSES
24 Mar 2019 
1 Reply 
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GST treatment of sales promotion payments to a foreign company and whether reverse charge applies depends on their commercial character.
Query concerning GST treatment and accounting nomenclature for cross border payments to a US LLC as consideration for increasing turnover, and whether reverse charge applies. The reply requests the US LLC's status relative to the manufacturer and the reason or purpose for the payment, seeking facts necessary to determine whether the payment is a commission, sales promotion expense, or a taxable supply subject to reverse charge. (AI Summary)
Query concerning GST treatment and accounting nomenclature for cross border payments to a US LLC as consideration for increasing turnover, and whether reverse charge applies. The reply requests the US LLC's status relative to the manufacturer and the reason or purpose for the payment, seeking facts necessary to determine whether the payment is a commission, sales promotion expense, or a taxable supply subject to reverse charge. (AI Summary)