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Tax implication, Goods and Services Tax - GST

Issue Id: - 116088
Dated: 2-3-2020
By:- Narayanan Jagadeesan
Tax implication

  • Contents

Dear Team

We source and supply goods from India (registered as Pvt Ltd company) to our principal registered in USA, who in turn will market / sell goods to various countries , working as their Franchise.

The principal buyer US , need invoice to be raised to seller at various countries directly with margin amount to seller end as indicated by principal to various countries and the profit or less will be shared according to % agreed between partners in India.

How do we raise invoice to buyer at abroad and when payment received how to account at our country India. A sample illustration is given below.

Cost at India say, ₹ 50000/=

Bill to abroad clients as advised by Principal at USA : ₹ 57,500/=(15% margin)

When payment received , the profit is 7,500/= and this will be shared amongst partners

in India , as per agreement.

Kindly enlighten GST and / or VAT tax implications . Request share sample invoice too.


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Posts / Replies

Showing Replies 1 to 1 of 1 Records

1 Dated: 2-3-2020
By:- Atul Rathod

Do billing as per the agreement. From GST Perspective-No difference, just take LUT and don't pay any taxes.

Howver, you can also do with payment and go for refund.


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