IN BANKING JEWEL LOAN - APPRAISER FEE RELATED

[VEL MURUGAN]

SIR

IM WORKING AS A GOLD APPRAISER IN TAMILNADU STATE APEX CO-OPERATIVE BANK

MY WORK IS COMMISSION BASIS

BANK COLLECT APPRAISER CHARGES FROM CUSTOMERS.

THAT CHARGES( APPRAISER FEE) IS TAXABLE UNDER GST OR NOT

FOR THE LAST FEW YEARS THEY COLLECT GST.

THAT IS CORRECT OR NOT

ANOTHER ? ON MY SERVICE IS TAXABLE UNDER GST OR NOT

BANK COLLECT ₹ 100( INCLUDE GST) FROM CUSTOMER THEN MY SHARE 80% BANK SHARE 20%

BUT I RECEIVED ONLY 67% . THIS IS CORRECT OR NOT

PLEASE REPLY FOR MY PROBLEM

THANK YOU SIR

G VELMURUGAN

[KASTURI SETHI]

The bank is not on right track. Suppose you are 'A' (Service Provider), Bank is service receiver as 'B' and ultimate consumer is 'C'. C is B's customer and not A's. A has nothing to do with C. C is your customer's customer. B is playing the role of intermediary.

Since A is supplying service to B, A is to collect GST from B and deposit with the Govt. It is A's duty and here the situation reverse. Why B is making payment to you after deduction of GST ? It is not TDS or TCS. An amount of ₹ 80/- includes GST and you get ₹ 67/- after deduction of GST of ₹ 13/- (@18%). Your service is taxable. You can avail threshold exemption of ₹ 20 lakhs.

Also go through the following case law pertaining to Service Tax regime.

2008 (12) S.T.R. 376 (Tri. - Chennai) = 2008 (7) TMI 147 - CESTAT, CHENNAI PUDUKOTTAI DISTRICT CENTRAL CO-OP. BANK LTD. Versus COMMISSIONER OF C. EX., TRICHY

[KASTURI SETHI]

The amount received from the bank should not be called 'commission'.

AI Summary

Gold Appraiser's Fees Subject to GST; Collect from Bank, Not Customers. Threshold Exemption of 20 Lakhs Available. A gold appraiser working on a commission basis at a cooperative bank in Tamil Nadu inquired about the applicability of GST on appraiser fees collected by the bank from customers. The appraiser questioned whether the GST collection was correct and why they received only 67% of the fee instead of 80%. A respondent clarified that the appraiser should collect GST from the bank, not the customer, and that the appraiser's service is taxable. The respondent also noted that the appraiser can avail of a threshold exemption of 20 lakhs and that the bank is acting as an intermediary.