Best answer: Is RCM applicable on foreign commission?

Services received from overseas commission agent is not chargeable to GST under RCM as place of supply is outside India. Facts: M/s.

Is RCM applicable on sales commission?

26 December 2019 RCM applicable for service recipient only but you are the service provider to bank/financial institution hence RCM not applicable for you.

Is commission exempt from GST?

Is GST chargeable on Commission? Yes, GST is to be charged on commission at rate of 18%. If a person registered under GST charges commission for transaction which is not his normal business then also GST is applicable.

On which service is RCM applicable?


Sl. No. Provider of service Percentage of service tax payable by service provider
1 Any person who is located in a nontaxable territory Nil
2 Goods Transport Agency (GTA) Nil
3 An individual advocate or firm of advocates Nil
4 An arbitral tribunal Nil

Is commission agent liable to GST?

Applicability of GST for Brokers and Commission Agents

As previously stated, “delivery or receipt of goods on behalf of the principal” is included in the definition of an agent. … If an invoice is issued in his name (agent’s name), it will fall under Schedule I transactions and will be subject to GST.

Is GST applicable on foreign income?

if payment is received in foreign currency then it will be export of services and no gst to be charged. if the payment is received in foreign currency, it will be classified as export of services. … In both cases end result is you don’t need to pay any GST.

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Are commissions taxable?

Commissions payable to brokers, agents, independent/exclusive sales representatives and marketing agents of companies are now subject to the same rates and rules applicable to professional fees. Previously, commissions are subject to 10% withholding tax only.

Is RCM applicable on import of goods?

The importer of services will have to pay tax on reverse charge basis. However, in respect of import of online information and database access or retrieval services (OIDAR) by unregistered, non-taxable recipients, the supplier located outside India shall be responsible for payment of taxes (IGST).