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How Commission Is Calculated — Simple Explanation #

For example,

If you sell a smartwatch at ₹2360/-
Taxable value : 2000/-
Commission rate = 19.5%

Commission = ₹2,000 × 19.5% = ₹390
GST on commission = ₹390 × 18% = ₹70.20
Total commission deducted = ₹390 + ₹70.20 = ₹460.2/-

TCS (0.5%) = ₹2,000 * 0.5% = ₹10/-

So from the order value, the total deductions would be: ₹460.2 + ₹10 = ₹470.2/-