Question
Whether RCM is applicable on commission paid ?
Answer
The provision of reverse charge is contained in
Section 9(3) & 9(4) of the CGST Act,2017.
Section 9(3) applies to the specified services as given in notification
No-13/2017 of central tax (Rate).
The provision of Section 9(4) are applicable to the supply made by the
unregistered person to the registered person but these provisions are suspended
by notification no 38/2017 of Central tax (Rate) dated 13/10/2017.
The notification No-13/2017 of central tax (Rate) does not contain commission
paid therefore reverse charge shall not be applicable to commission paid to
agent in normal course. (Reply dt.12/01/2019)