Advertisement Agency Gst


KUMAR EC
watch_later 2 years, 4 months ago

I AM RUNNING ONLY PRINT MEDIA ADVERTISEMENT AGENCY. PUBLICATIONS INFORMED TO PUT 5% GST ON THEIR BILL. I AM BILLING TO CUSTOMER FULL BILL. AND COLLECTING THAN CLEARED PUBLICATION PAYMENTS. 

NOW HOW TO MAKE BILL TO OUR CUSTOMER. HOW MUCH TAX I WANT TO ADD IN BILL TO CLIENTS. 

I AM PAYING IT ACCOUNT AND TAX SEPARATELY. 

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2 Answers

anonymous user watch_later 2 years, 4 months ago
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I THINK, PUBLICATIONS GST 5% ON 85 % OF THEIR BILL SO AGENCY WANT PUT 100% TO CLIENTS AND CAN INPUT PUBLICATIONS TAX PAID ALREADY. THAN ONLY CLIENTS CAN TAKE INPUT FOR THE FULL TAX.

OTHERWISE IF AGENTS GO IN PUBLICATIONS NET AMOUNT AND THAN TAX AS OLD SERVICE TAX 18% FOR REST AMOUNTS (IF WE ALLOWED ANY DISCOUNT TO CLIENTS NET COMMISSION ONLY) . THAN WE TAKE INPUT, FROM PUBLICATION GST PAID FOR US MEANS, IT’LL GO LESS THAN 5% TO GOVT. SO IF WE PUT REST OF 15% @ 5% TAX MEANS IS RIGHT WAY. AND NO MULTIPLE TAX WILL COME IN THIS WAY. HOPE OK..?  

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Pulkit Sharma watch_later 2 years, 4 months ago
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If you are billing your customer (one who gave you advertisement) then you have to charge 18% GST.

5% is on selling of advertisement space in print media. You are not selling space on print media but helping your client in securing a slot.

There is no separate mention of commission agent supplies.

Best thing for you to do will be to ask newspaper to directly bill the customer. You only give your commission invoice to news paper.

If you bill your customer, then you have to charge 18% and newspaper will charge 5% to you.

You will have to pay differential tax amount of 13%.

But if you charge only commission to newspaper in that case you will have to pay only 18% on your commission amount.

Even your customer will be charged only 5% by newspaper.

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    That was my opinion, depending on nature of business arrangement take the best decision. - Pulkit Sharma
    NO I AM BOOKING SPACE IN NEEWS PAPER THEY ARE ALLOWING ME AS TRADE DISCOUNT. AND I AM RE SELLING THIS SPACE TO ANY CLIENTS AS MY CHOICE. I AM NOT GETTING COMMISSION. IN THIS TRADE DISCOUNT SOME TIME ALLOWING SOME DISCOUNT AS DEPENDS ON OUR CLIENTS. IF I AM GETTING BILL FROM PUBLICATION, IN CLIENT NAME, AND GET MY COMMISSION THATS AS COMMSSION. THIS IS ONLY RESELL OF SPACE. - KUMAR EC
    IF I PUT 18% TOTAL DEATH OF OUR BUSINESS. AND CLIENTS WILL NOT ACCEPT OUR AGENCY THEY CAN GO DIRECT TO PUBLICATIONS. ITS TOTAL DIFFICULT TO CLIENTS. AND WE CAN GO SHUT OUR BUSINESS. - KUMAR EC
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