Dear All,
Just wanted to know the difference between Pure agent under Rule 5(2) and Intermediary under POP Rule2(F).
If distinguished members can throw some light on this.
Also, please let me know whether both are mutually exclusive or we can use it simultaneously at respective places. What i mean is can we draft an agreement between two parties where all the essence of both Pure agent and Intermediary are present and revenue authorities cannot deny either of them.
Understanding 'Pure Agent' vs 'Intermediary' Roles in Service Tax: Key Documentation Tips for Compliance The discussion focuses on distinguishing between a 'pure agent' and an 'intermediary' under service tax laws. A pure agent acts on behalf of a service recipient without adding profit, while an intermediary facilitates services or goods between parties and may include a profit element. The conversation emphasizes the importance of documentation, such as Purchase Orders (PO), Service Receipt Notes (SRN), and agreements, to substantiate the nature of transactions. It is noted that accurate documentation ensures that payments to a pure agent match the actual costs incurred, avoiding service tax implications. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
