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.


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