banner_ad

Meaning of Pure agent

This query is : Resolved 

05 August 2010 A service provider give his immovable property to B on fixed rent per month besides rent in the agreement executed between the A & B there is also one clause that A will provide the two Security person to B and B will reimburse to A on cost recovery basis i. e. actual amount paid by A to security agency.
Please clarify whether A should also charge service tax from B on the security bill or here A will be treated as the pure agent of B and not charge the service tax on security bill under Rule 5(2) of Determination of value rules, 2006
Thanks in Advance for giving the reply with reasoning

07 August 2010 SERVICE TAX NEED NOT BE CHARGED ON EXPENCES TO BE REIMBURSED, SUBJECT TO THE CONDITION THAT THE CONTRACT ALSO PROVIDE THAT IN CASE OF DEFAULT OF PAYMENT TO SECURITY AGENCY BY A, B WILL BE LIABLE TO PAY IT TO SECURITY AGENCY.


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro

Similar Resolved Queries


loading


Unanswered Queries



CCI Pro
Meet our CAclubindia PRO Members

Follow us
add to google news



Answer Query



Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details