https://www.taxtmi.com/caselaws?id=152450 A distribution arrangement is characterised by the substance of the agreement, not by invoice form or tax collection practice. Where a sole selling intermediary forwards orders for the manufacturer, issues invoices on the manufacturer's behalf, earns commission, and assists in recovery of sale proceeds, with the manufacturer retaining control over prices, discounts and enforcement of claims, the relationship is one of principal and agent. The intermediary does not become a purchaser buying goods for resale on its own account merely because invoices are issued in its name and sales tax is collected by it. On these terms, the agreement was held to create agency, not a sale. en-us Fri, 16 Jun 1978 00:00:00 +0530 Wed, 03 Jul 2013 17:35:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=152450 A distribution arrangement is characterised by the substance of the agreement, not by invoice form or tax collection practice. Where a sole selling intermediary forwards orders for the manufacturer, issues invoices on the manufacturer's behalf, earns commission, and assists in recovery of sale proceeds, with the manufacturer retaining control over prices, discounts and enforcement of claims, the relationship is one of principal and agent. The intermediary does not become a purchaser buying goods for resale on its own account merely because invoices are issued in its name and sales tax is collected by it. On these terms, the agreement was held to create agency, not a sale. Case-Laws VAT and Sales Tax Fri, 16 Jun 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=152450