Brokerage, split and what reaches you
Work out brokerage on a deal including both sides, a co-broker split and GST, and see what actually reaches you after tax withholding.
Your numbers
| Total brokerage on the dealBoth sides combined, before any split. | — |
| Co-broker's share | — |
| GST (collected, not earned)Payable to the exchequer — never treat it as income. | — |
| TDS withheldNot a cost — credited against your tax when you file. | — |
| Paid to you at settlementFee plus GST, less TDS withheld. GST is not yours — it is paid across. | — |
| Effective rate you actually keep | — |
Brokerage looks simple until there is a co-broker, GST, a tax deduction at source and a client asking for an adjustment in the same week.
This works the whole chain: the fee on each side, the split, GST, the withholding, and what actually lands. Having that number ready is also what lets you hold a fee calmly rather than negotiating from a position you have not thought through.
Agree the fee before you do the work
In writing, at the first meeting: the percentage or amount, what triggers it (usually registration, sometimes agreement to sell), what it covers, and who pays what where both sides are represented.
An agent who has not confirmed this in writing has an opinion, not an agreement — and the client knows it when the registry is next week.
Worked example
₹80 lakh deal, 1% from each side is ₹1.6 lakh total. On a 50/50 co-broker split your fee is ₹80,000. With 18% GST the invoice is ₹94,400; the client withholds 5% TDS (₹4,000) and pays ₹90,400.
You spent ₹18,000 on photography, ads and travel. Your real earnings on the deal are ₹62,000 once TDS is reclaimed — an effective 0.775% of the deal value, not the 2% the headline suggests.
Running this on a few past deals is uncomfortable and useful. Most agents overestimate what a deal pays.
When a client asks for a cut
Do not defend the percentage — describe the work. The enquiries handled, the buyers filtered out, the document problem caught in April. Most clients genuinely do not know what happened because you shielded them from it.
Then trade rather than cut: an exclusive mandate, a second property, a written testimonial and two referrals. A concession in exchange for value is a negotiation. A concession for nothing tells the client the original number was invented.
GST registration thresholds and TDS provisions depend on your turnover and status. Confirm with a chartered accountant.
Questions
Is GST part of my income?
No. It is collected on behalf of the exchequer and paid across. Treating it as earnings is one of the most common cash-flow mistakes small agencies make.
Should brokerage be charged to both sides?
Conventions differ by city and segment. What matters is that both parties know in writing, upfront, what each is paying — surprises here damage trust at exactly the wrong moment.
Should I ever reduce my fee?
Only in exchange for something — an exclusive mandate, multiple transactions, a longer listing period. A cut given for nothing tells the client the original number was arbitrary.
The number convinces. The reel gets you the call.
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