Pure Agent - TDS deposit and return

[JOHN SHANNEL]

Pure agent pays rental on behalf of me.

can you clarify who is responsible for depositing TDS and file TDS return? pure agent or Principal (me)

[KASTURI SETHI]

DEAR SH. JOHN SHANNEL,

I am not expert in the field of Income Tax. You need to peruse the definition of pure agent. After reading the definition, you will be able to arrive at decision yourself.

Rule 33 of CGST Rules, 2017, “pure agent” means a person who -

(a) enters into a contractual agreement (whether written on otherwise) 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 provided as pure agent of the recipient of supply;

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

(d) receives only the actual amount incurred to procure such goods or services.

Examples of pure agent are : Travel Agent, C & F Agent, CHA etc.

AI Summary

Who is Responsible for TDS Deposit When a Pure Agent Pays Rent? Consult Rule 33, CGST Rules 2017. A forum participant inquired about the responsibility for depositing TDS and filing TDS returns when a pure agent pays rent on their behalf. The response suggested consulting the definition of a 'pure agent' under Rule 33 of the CGST Rules, 2017, which outlines the criteria for someone acting as a pure agent. This includes entering a contractual agreement to incur costs for a recipient without holding any title to the goods or services, not using them for personal interest, and only receiving reimbursement for actual expenses. Examples of pure agents include travel agents and C&F agents.