TaxTMI 
TaxTMI 
Advance payment for pure agent
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....dvance payment for pure agent<br> Query (Issue) Started By: - Basha Sikander Dated:- 4-7-2017 Last Reply Date:- 5-7-2017 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Dear Experts, Good Evening. We are Customs Broker and we perform the role of 'PURE AGENT" for speedy Customs Clearance of Import and Export Activity. During this process, we normally receive advances from our Cu....
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....stomer for the following : 1. Customs Duty 2. Airline / Shipping Line / Freight forwarders 3. Container Freight Stations / Warehouse All these expenses are paid on behalf of our Customer and billed to Customers as pure agent without any mark-up on these bills. Due to introduction of GST, few of our Customers raised the issue of "Advance Payment requires to charged to GST"?? Kindly ....
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....clarify. Regards, Nagarajan Reply By KASTURI SETHI: The Reply: These remarks mean advance payment is meant for payment of GST. As Point of Taxation Rules (which have been carried forward in GST) date of receipt of advance is point of taxation. In other words, payment of GST becomes due on the date of advance. Reply By CS SANJAY MALHOTRA: The Reply: No Tax on "Pure Agent" Services. ....
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....Please go through Valuation Rules. Reply By Kishan Barai: The Reply: No Tax on Pure Agent coined correctly by CS Sir on Above reply But when CHA firm bill to Exporter / Importer / Customer they need to charge 18% for there services Reply By KASTURI SETHI: The Reply: Sh.CS Sanjay Malhotra Ji, Sir, Thanks for clearing the doubt and hence enrichment of my knowledge. Pl. continue sharing know....
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....ledge.<br> Discussion Forum - Knowledge Sharing ....