Agent characterisation determines whether del credere interest is included in goods' taxable value under GST rules. A del credere agent (DCA) guarantees payment by advancing payment or credit; whether the DCA is an agent under Schedule I depends on invoicing: if the supplier issues the invoice, the DCA is not an agent; if the DCA invoices in its own name, it is an agent. If not an agent, short term credit by the DCA is an independent supply and interest need not be included in the goods' value. If an agent, the credit is subsumed in the goods' supply and interest must be included in the taxable value.
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.
Agent characterisation determines whether del credere interest is included in goods' taxable value under GST rules.
A del credere agent (DCA) guarantees payment by advancing payment or credit; whether the DCA is an agent under Schedule I depends on invoicing: if the supplier issues the invoice, the DCA is not an agent; if the DCA invoices in its own name, it is an agent. If not an agent, short term credit by the DCA is an independent supply and interest need not be included in the goods' value. If an agent, the credit is subsumed in the goods' supply and interest must be included in the taxable value.
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