TaxTMI 
TaxTMI 
Value of supply in case of Pure Agent Concept in GST [Rule 33 of CGST Rules]
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.... on behalf of the recipient and claims reimbursement (as actual, without adding it to the value of his own supply) for such supplies from the recipient of the main supply . While the relationship between them (provider of service and recipient of service) in respect of the main service is on a principal to principal basis, the relationship between them in respect of other ancillary services is that of a pure agent. * The concept of pure agent is borrowed from the erstwhile Service Tax Determination of Value Rules, 2006 and carried forward under GST. RELEVANCE OF PURE AGENT UNDER GST * The important thing to note is that a pure agent does not use the goods or services so procured for his own interest and this fact has to be determined f....
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....usion of expenditure incurred as pure agent is possible only and only if all the conditions required to be considered as a pure agent and further conditions stipulated in the rules are satisfied by the supplier in each case. The supplier would have to satisfy the following conditions (in addition to the condition required to be satisfied to be considered as a pure agent) for exclusion from value as under:- i. the supplier acts as a pure agent of the recipient of the supply, when he makes payment to the third party on authorization by such recipient; ii. the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and iii. th....
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....t * M/S. Teamlease Education Foundation - 2022 (3) TMI 574 - AAAR, Karnataka * 1. The Applicant does not qualify to be a pure agent of the Industry partner to the extent of reimbursement received towards stipend paid to Trainees on behalf of Industry partner as part of training agreement and therefore the said reimbursement is chargeable to GST. * 2. The Applicant does not qualify to be a pure agent of the Industry partner to the extent of reimbursement received against cost of medical and accident insurance obtained for the benefit of Trainees by the Applicant and reimbursed by the Industry partner as per the training agreement and therefore the said reimbursement is chargeable to GST. * There are conflicting rulings ....
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.... of GST paid on PSF and UDF on the basis of pure agent's invoice issued by the airline to them. * 2.9 The airport operators shall pay GST on the PSF and UDF collected by them from the passengers through the airlines. Since, the airport operators are collecting PSF and UDF inclusive of ST/GST, there is no question of their not paying ST/GST collected by them to the Government. * 2.10 The collection charges paid by airport operator to airlines are a consideration for the services provided by the airlines to the airport operator (AAI, DAIL, MAIL etc) and airlines shall be liable to pay GST on the same under forward charge. ITC of the same will be available with the airport operator. 2. clarified in erstwhile Service Tax regime....
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.... and B is a Custom Broker. A approaches B for customs clearance work in respect of an import consignment. The clearance of import consignment and delivery of the consignment to A would also require taking service of a transporter. So A, also authorises B, to incur expenditure on his behalf for procuring the services of a transporter and agrees to reimburse B for the transportation cost at actuals. * In the given illustration, B is providing Customs Brokers service to A, which would be on a principal to principal basis. The ancillary service of transportation is procured by B on behalf of A as a pure agent and expenses incurred by B on transportation should not form part of value of Customs Broker service provided by B to A. This, in ....
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.... 10 Telephone expenses 2,000 Compute the value of supply made by Mudra Logistics with the help of given information. Would your answer be different if Mudra Logistics has charged Rs.13,00,000 as a lump sum consideration for getting the imported machine cleared from the customs station and bringing the same to the warehouse of RPM Ltd.? In this case * Mudra Logistics has entered into a contractual agreement with recipient of supply, RMP Pvt. Ltd.., to incur, on behalf of such recipient, the expenses mentioned in S. No. (2) to (7) incurred in relation to clearance of the imported machine from the customs station and bringing the same to the warehouse of the recipient. Further, Mudra Logistics does not hold any title to sai....