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

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....ow 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<br> Query (Issue) Started By: - Jijo Mathew Dated:- 2-9-2019 Last Reply Date:- 19-9-2019 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>There is an Internet portal where we have companies and individuals registered. The portal provides co....

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....mpanies 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 providin....

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....g service for the companies Reply By KASTURI SETHI: The Reply: A person who gets commission works for and on behalf of another is called intermediary. See the definition of &#39;intermediary&#39; under Section 2(13) of IGST Act. The supplier of services providing service on his own account will not be treated as intermediary. (13)&emsp;"intermediary" means a broker, an agent or any other person....

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...., by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account&quot;. Above definition should be read with Board&#39;s circular appended below: (emphasis is on para 3.1) Information Technology enabled Services (ITe....

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....S services) - Clarification on various doubts C.B.I. & C. Circular No. 107/26/2019-GST, dated 18-7-2019 Reply By Shilpi Jain: The Reply: The Company can invoice the individual and the internet portal can invoice the Company for its commission. Payment to the portal by individual should not affect taxability<br> Discussion Forum - Knowledge Sharing ....