TaxTMI 
TaxTMI 
IGST ON COMMISSION INCOME
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....GST ON COMMISSION INCOME<br> Query (Issue) Started By: - NILESH PITALE Dated:- 15-1-2024 Last Reply Date:- 27-1-2024 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Dear Expert We are Importer and Trading Goods in the Local market, We have to pay Less Amount to the Our Foreign Supplier, We have Accounted Less Amount Under the head Commission Income under balance Sheet, Now Under Departmen....
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....t Audit, GST Officer has issued show cause for Leavy IGST Amount on Commission Amount Under Section 13 of IGST Act, (Section 13(8)(B), They are Treating us Intermediary for such Commission . How to tackle , Please Guide Reply By Amit Agrawal: The Reply: Are you buyer of goods imported or not? Or, are you importing goods in the capacity of agent of foreign supplier? If you are buyer of goods im....
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....ported (i.e. you are not importing goods in the capacity of agent of foreign supplier) and if you can prove the same with documentary evidences, then, kindly explain why you booked difference as 'commission income' instead booking the transactions as sales & purchases (as traders normally do)? Reply By KASTURI SETHI: The Reply: Dear Querist, Terms and conditions of the agreement/contr....
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....act executed with foreign buyer supported books of accounts would determine whether you are intermediary or not. Reply By Shilpi Jain: The Reply: If you are trading in goods, that would mean you have accounted purchase and sale in your books. Profit will be the difference between the two. If commission is accounted in books then the activity may not be trading. Reply By KASTURI SETHI: The Rep....
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....ly: The definition of 'intermediary' under Section 2 (13) of IGST Act will be helpful in this context  "intermediary" means a broker, an agent or any other person, 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 securit....
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....ies on his own account; Reply By vijay kumar: The Reply: If you are only trader and the intermediary agent is located abroad, to the extent of commission, the place of supply is abroad and is not taxable. It doesn't matter if you have reduced the commission. If you can share the notice, we can throw more light on the issue<br> Discussion Forum - Knowledge Sharing ....