Basic Commission Calculator
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Commission Amount:
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GST (18%):
₹0.00
TDS Deduction:
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Base Salary:
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Total Earnings:
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Earnings Projection
Indian Tax & Commission Guidelines
GST on Commissions
In India, commissions are typically subject to GST at 18% under SAC code 997331. The GST implications vary based on:
- Whether the commission agent is registered under GST
- Whether the transaction is B2B or B2C
- The specific service category under which the commission falls
For businesses with turnover less than ₹40 lakhs (₹20 lakhs in some states), GST registration may not be mandatory.
TDS on Commission Payments
Under Section 194H of the Income Tax Act, TDS on commission payments is applicable at the following rates:
- 10%: Standard rate (if PAN is provided)
- 20%: If PAN is not provided
- 5%: For insurance commissions
- 2%: For certain specific services
TDS applies when commission exceeds ₹15,000 in a financial year. For individuals/HUFs, TDS obligation applies only if their turnover exceeds specified limits.
Common Commission Structures in India
Real Estate
- 1-2% for residential properties
- 2-5% for commercial properties
- Often tiered based on property value
Insurance
- 15-40% for first-year premiums
- 5-10% for renewal premiums
- Trailing commissions over policy lifetime
Retail Sales
- 5-15% on MRP for most products
- 2-5% for electronics and appliances
- Often uses tiered structure with targets