Hi,
I engaged a Wedding planner to get all the material for venue decoration, Chairs, generator, flowers, and arrange others like makeup and band etc. He charged the cost of all these items plus a professional service charge. Since all the payments to him are made by cheque, he said that 18% GST is payable on the total amount charged by him including payments he made for others.
Can any one clarify, if it is correct for him to charge GST for the total amount paid to him or he should apply GST only for his professional charges. If it is for the total charges, as his CA is informing me, which is a substantial amount, how to ensure that he pays all the tax collected from me to the government? What documents he should provide me on payment or before payment so that I can be satisfied that he will pay all the taxes collected from me?
Thank you
You cannot verify from any source, except checking his bank account transaction and payment receipt.
However to be sure that he pays to government, do not forget to collect Tax Invoice from him with tax amounts and his GST number.
Regarding charging GST on full amounts, yes he has to charge GST on full amount and not only on his service fee.
If you have paid him by cheque, then he will deposit the tax.
You can verify at the time of verifying GSTR2 in next month. If you have no guarantee, simple way is to hold GST payment or part payment till verifying GSTR2A. If the service provider not file the return, you simply file your GSTR2,rest portal will do
JOIN LARGEST DISCUSSION PLATFORM
Sign up to discuss taxation, accounting and finance topics with experts from all over India.
Join Discussion
