Commission Agent


Sukesh kumar
watch_later 1 month ago

Dear Sir,

 

My company is an agent of a Switzerland based company and selling their coal in North India. The coal are invoiced direct by Switzerland company direct to customers in USD and customers import the coal after paying custom duty( IGST) and we get commission from that Switzerland based company in US Dollars.

 

For getting commission We raise a commission invoice to  Switzerland based company but that being a Switzerland company, We can not charge any GST from Switzerland company in our invoice.  Switzerland Company as that company is not subject to Indian taxation laws.

 

So, three question arise.

 

  1. Any tax liability occur of export service ?
  2. What type of GST will have to pay. i.e. IGST or CGST and SGST ?
  3. Which sheet of GSTR 1 will be filed in this regards. i.e. B2C or exp or else any ?

 

Please advice me.

In this regards, your response will be highly appreciated.

  • chatComments
1 Answer

Suresh Paramasivam watch_later 4 weeks ago
arrow_drop_up
0
arrow_drop_down

Hi,

“Export of services” means the supply of any service when,-

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India; and

(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.

The following condition is applied in your case then it is export of service.

1. Any tax liability occur of export service ?

No.

But Two Condition apply in export. 1. Payment with tax , 2. Payment without tax.

If you select payment with tax then if u have any ITC claim in india. u can adjust then pay balance IGST for export of service then after u can go for refund.

If you select payment without tax then u have any ITC claim in india. Then u have to claim ITC after export of service.

2. What type of GST will have to pay. i.e. IGST or CGST and SGST ?

IGST

3. which sheet of GSTR 1 will be filed in this regards. i.e. B2C or exp or else any ?

Table 6A

 

Thanks and Regards

Suresh.P

 

 

 

  • chatComments
Did Not get Answer?

Join the largest Taxation Q&A platform on internet and ASK YOUR OWN question.

Ask your Question

You need to be logged in to answer.

Ask Question