Principal-agent invoice test determines GST treatment and registration consequences for agents under Schedule I, compliance required. Schedule I deems certain transfers between principal and agent to be supplies without consideration where the agent supplies or receives goods on behalf of the principal; the decisive test is whether the agent issues the invoice in his name and thereby transfers title. Services between principal and agent remain taxable only when consideration exists. Agents who invoice in their own name and transfer title fall within Schedule I and may be subject to compulsory registration; agents who procure or merely facilitate without invoicing in their own name do not.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Principal-agent invoice test determines GST treatment and registration consequences for agents under Schedule I, compliance required.
Schedule I deems certain transfers between principal and agent to be supplies without consideration where the agent supplies or receives goods on behalf of the principal; the decisive test is whether the agent issues the invoice in his name and thereby transfers title. Services between principal and agent remain taxable only when consideration exists. Agents who invoice in their own name and transfer title fall within Schedule I and may be subject to compulsory registration; agents who procure or merely facilitate without invoicing in their own name do not.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
