https://www.taxtmi.com/caselaws?id=421473 The AAR Tamil Nadu ruled that on-road components (registration fees, road tax, insurance premiums) paid by an operational leasing company cannot be treated as pure agent services. The Authority held that these charges are incidental expenses necessary to make vehicles road-worthy before leasing, forming part of the taxable supply value under Section 15(2) of GST Act. The applicant failed to establish pure agent status as they paid charges to fulfill statutory requirements under Motor Vehicles Act for their own leasing business, not on behalf of the lessee. Therefore, on-road component recoveries from lessees constitute part of taxable leasing services. en-us Thu, 31 Mar 2022 00:00:00 +0530 Wed, 02 Apr 2025 16:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421473 The AAR Tamil Nadu ruled that on-road components (registration fees, road tax, insurance premiums) paid by an operational leasing company cannot be treated as pure agent services. The Authority held that these charges are incidental expenses necessary to make vehicles road-worthy before leasing, forming part of the taxable supply value under Section 15(2) of GST Act. The applicant failed to establish pure agent status as they paid charges to fulfill statutory requirements under Motor Vehicles Act for their own leasing business, not on behalf of the lessee. Therefore, on-road component recoveries from lessees constitute part of taxable leasing services. Case-Laws GST Thu, 31 Mar 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421473