Calculator · brokers & CPs

Channel partner commission calculator with GST, TDS and milestone payouts

Enter the deal value and brokerage rate to see the gross commission, GST on the invoice, TDS under Section 194H, the net amount the partner receives and how it splits across booking, agreement and registration.

Base sale consideration, excluding GST and registration.

1–2% is typical for primary sales; CP slabs go to 3–4% on launches.

Payout milestones
MilestoneShare %GrossNet to partner
₹1,25,000₹1,45,000
₹75,000₹87,000
₹50,000₹58,000
Net payout to partner
₹2,90,000
₹2,50,000 brokerage + ₹45,000 GST − ₹5,000 TDS
Brokerage (gross)
₹2,50,000
2% of ₹1.25 Cr
GST on invoice
₹45,000
18%, developer can claim ITC where eligible
TDS deducted
₹5,000
credited in partner's 26AS
Developer outflow
₹2,95,000
invoice value incl. GST
TDS is deducted on the brokerage, not on the GST component, and is not a cost: it is advance tax that the partner adjusts in their return. GST on brokerage is input credit for the developer, so the true cost of a 2% CP deal is closer to 2% than to 2.36%.

How channel partner payouts actually work

A channel partner (CP) brings a buyer to a developer's project and is paid a percentage of the agreement value when the buyer books. The headline rate is simple; what reaches the partner's bank account is not, because three things sit between the rate and the cash: GST, TDS and the developer's milestone schedule.

Gross brokerage

Agreement value × brokerage rate. The base is the sale consideration in the agreement for sale, excluding GST on the unit, stamp duty, registration charges, maintenance deposits and other charges. Check that your CP agreement says so; some developers compute on the "basic" price before floor-rise and PLC, which can be 5–10% lower.

GST on the invoice

Brokerage is a taxable service at 18%. If the partner is GST-registered, the invoice carries gross + 18% GST and the developer pays the total. Because the developer can claim that GST as input credit against its own output GST on under-construction sales, the true cost to the developer is the gross, not the invoice.

TDS under Section 194H

The developer deducts tax at source on commission: 2% from 1 October 2024 (it was 5% before), once the partner's commission in the year crosses ₹20,000. TDS is deducted on the brokerage component only, not on GST, and shows up in the partner's Form 26AS to be adjusted against income tax. It is timing, not cost.

Milestones

Developers rarely pay the whole commission on booking. A common split is 50% when the booking amount is realised, 30% on the agreement for sale and 20% on registration or on the buyer paying a set percentage. Longer collection-linked schedules are used for subvention and CLP deals. The calculator applies the same GST and TDS treatment to each milestone so the schedule reads as real cash.

Where CP economics go wrong

  • Cancellations: most agreements claw back commission if the buyer cancels before registration. Budget for it.
  • Base ambiguity: "2% of the deal" means nothing until the base is defined.
  • Unregistered partners: a developer paying a partner who should be GST-registered but is not carries compliance risk; many now insist on GSTIN and RERA number at empanelment. See the RERA agent registration guide.
  • Slow milestones: a 30-day booking payout that slips to 90 days is a 60-day loan to the developer. Track it.
Questions

Frequently asked

What is the standard channel partner commission in India?

For primary (developer) sales, 1–2% of the agreement value is the norm, paid by the developer. Launch-phase and slow-moving inventory often carry 3–4% slabs, and some developers add milestone-linked incentives on top. Resale brokerage is typically 1–2% from each side.

Is GST charged on real estate brokerage?

Yes. Brokerage is a service taxed at 18% GST. A GST-registered partner charges it on top of the commission; the developer can generally claim it as input tax credit. Partners under the ₹20 lakh annual turnover threshold need not register and do not charge GST.

How much TDS is deducted on brokerage?

Under Section 194H, 2% of the commission (reduced from 5% with effect from 1 October 2024) once payments to the partner exceed ₹20,000 in a financial year. TDS applies to the brokerage, not to the GST component, and is credited to the partner against their income tax.

When is a channel partner paid?

Most developers pay in milestones: a share on booking once the booking amount clears, a share on the agreement for sale, and the balance on registration or on a collection threshold (often 10–20% of the agreement value). The split in the calculator is editable to match your agreement.

What should a CP agreement state about payout?

The rate, the base it applies to (agreement value, excluding GST and other charges), the milestone split and timelines, GST treatment, the clawback if a booking is cancelled, and which party bears TDS. Disputes almost always come from one of these being left implicit.

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