Question35: Advice regarding compulsory
registration of commission agent without any threshhold limit, in view of sec
24(vii) and sec 2(5) of CGST Act. You can understand, this is required for
making provision for year end.
Answer Some people are deriving the conclusion that registration is must
for commission income on the basis of section 24(vii) The same is as follow
SECTION 24 OF CGST ACT
(vii) persons who make taxable supply of goods or services or both on behalf of
other taxable persons whether as an agent or otherwise;
Now let us consider the practical position the same is as follow
There can be two types of cases
First the commission is paid on the basis of some performance like on sale of
property etc If a dealer search a buyer for seller of property then he does not
sale property on behalf of vendor (other person) in that case this subsection
will not apply
Second case when a ticketing agent sale ticket of air line then he sale on
behalf of other in that case this sub section will apply
So please check first about the nature of commission then decide about the
application of section (Reply dt. 18/4/2018)