Pure agent

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Sandeep Kumar

Sandeep Kumar (Querist)

17 October 2013 Dear Sir
i wnat to know about the pure agent described in service tax in the simple way/manner

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

17 October 2013 it means his interest is restricted to only commision income and activities to earn it.

He is not the buyer or seller in indirect way also.

Message likes : 1 times

@VaibhavJ

@VaibhavJ (Expert)

17 October 2013 Hi

Pure agent means a person while buying/selling goods/services clearly mentions he is buying goods on behalf of his principle.

Thanks//VaibhavJ

Ajay Mishra

Ajay Mishra (Expert)

17 October 2013 Hi

For the purpose of sub- rule (2) of Rule 5 of Service Tax (Determination of Value) Rules, 2006: “pure agent” means a person who–
(a) enters into a contractual agreement with the recipient of service to act as his pure agent to incur expenditure or costs in the course of providing taxable service;
(b) neither intends to hold nor holds any title to the goods or services so procured or provided as pure agent of the recipient of service;
(c) does not use such goods or services so procured; and
(d) receives only the actual amount incurred to procure such goods or services.

Sandeep Kumar

Sandeep Kumar (Querist)

18 October 2013 thanks to all

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