Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID : 116584
- 0 -

classification of Service (SAC code and rate of Tax) Required

Date 28 Jul 2020
Replies4 Answers
Views 3290 Views
Asked By

Dear Sir,

Air travel bill (flight tickets) was charged to my client (i.e,invoice in the name of our client). we paid the said amount to travel agency. Later on, we need to raise the invoice on our client for air travel charges paid(incl GST) + service charge (i.e, our income) @ 5%.

Air travel agency (Supplier) invoice details:

SAC code :99642

Rate of Tax: 5%

Here we are just a mediators to complete the transaction. IS it comes under Pure agent??

So, my issues are enumerated as below:

1. SAC Code ?

2. Rate of Tax ?

3. Valuation for GST charge (i.e, tax to be charged only on service charges or else travel charges+Service charges)

4. Is the supplier SAC code and tax rate can be used for issuing tax invoice to my client ? here the issue if we charge the aforesaid one, we are not dealing with travel agency business.

5. or can we use the SAC code for "other support services"

Pls explain

Thanking in advance.

Regards

Gowtham

4 answers
Sort by

Old Query - New Comments are closed.

Hide
- 0
Replied on Jul 29, 2020
1.

As per Rule 33 of the CGST Rules, 2017 a “pure agent” means a person who :

(a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;

(b) neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply;

(c) does not use for his own interest such goods or services procured; and

(d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.

To qualify as 'pure agent', one of the conditions is to enter into contractual agreement with the receiver of service. Have you entered into contractual agreement ? Pl. confirm.

- 0
Replied on Jul 29, 2020
2.

Dear Sir,

we didn't entered in to any Agreement. I believe that we didnt come under Pure agent because we are charging service charge on that and also other conditions not satisfied.

Pls explain the 5 queries .....

Waiting for your response.

- 0
Replied on Jul 29, 2020
3.

Query-wise my views are as under:-

1.998599

2.18%

3. Only service charges or commission charges (whatever you may call).

4. Cannot be used. The nature of your service is different.

5. Yes. Other support services n.e.c.

- 0
Replied on Jul 29, 2020
4.

Thanks Mr.Kasturi Sethi for the immediate response

Old Query - New Comments are closed.

Hide
Recent Issues