Principal-agent classification determines whether interest by del credre agents is included in the taxable value of goods. Whether a del credre agent is an agent under Schedule I depends on invoicing: if the supplier issues the invoice the DCA is not an agent; if the DCA issues the invoice in its own name the DCA is an agent. If not an agent, the short term loan/interest by the DCA is an independent supply and not includible in the value of goods; if an agent, the credit is subsumed into the supply of goods and interest must be included in the value of those goods.
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 classification determines whether interest by del credre agents is included in the taxable value of goods.
Whether a del credre agent is an agent under Schedule I depends on invoicing: if the supplier issues the invoice the DCA is not an agent; if the DCA issues the invoice in its own name the DCA is an agent. If not an agent, the short term loan/interest by the DCA is an independent supply and not includible in the value of goods; if an agent, the credit is subsumed into the supply of goods and interest must be included in the value of those goods.
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