Del-credere agent treatment determines whether interest on DCA-provided credit is included in the value of goods supplied. The circular clarifies that invoice issuance determines whether a del-credere agent qualifies as an agent under Para 3 of Schedule I: if the supplier issues the invoice (even through the DCA) the DCA is not an agent; if the DCA issues the invoice in his own name the DCA is an agent. If the DCA is not an agent, short-term credit provided by the DCA is an independent supply and interest is not included in the supplier's value; if the DCA is an agent, the credit is subsumed into the goods supply and interest must be included in the value of supply.
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.
Del-credere agent treatment determines whether interest on DCA-provided credit is included in the value of goods supplied.
The circular clarifies that invoice issuance determines whether a del-credere agent qualifies as an agent under Para 3 of Schedule I: if the supplier issues the invoice (even through the DCA) the DCA is not an agent; if the DCA issues the invoice in his own name the DCA is an agent. If the DCA is not an agent, short-term credit provided by the DCA is an independent supply and interest is not included in the supplier's value; if the DCA is an agent, the credit is subsumed into the goods supply and interest must be included in the value of supply.
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 
