How is taxation done between three parties when the middle party is working on a commission basis without letting the other two transact with each other

[Jijo Mathew]

There is an Internet portal where we have companies and individuals registered.

The portal provides companies the service of Individuals

Payment model is like, Companies pays portal, Portal pays individuals , Portal take commission from the companies for the services provided by the individuals

What all taxes are involved in these transactions ? Who all can generate an Invoice ?

1. Payment from companies to Internet portal for facilitating service

2. Internet portal to Individuals for providing service for the companies

AI Summary

GST Implications on Commission-Based Intermediaries: Taxability of Payments from Individuals to Portals Unaffected by Invoicing Changes. In a discussion about taxation involving three parties where the middle party operates on a commission basis, the issue revolves around the Goods and Services Tax (GST) implications. The scenario involves companies paying an internet portal, which then pays individuals for services, with the portal taking a commission. The portal, acting as an intermediary, facilitates transactions between companies and individuals. It is suggested that the company can invoice the individual, and the portal can invoice the company for its commission. The taxability of payments from individuals to the portal should not be affected.