LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Gst on reimbursement of expenses

Sashi Kala Kommuri (Articled Assistant) (7 Points)

11 June 2018

Will Gst be applicable on reimbursement of electricity charges by the company to its Clearing and Forwarding agent or should the Clearing and forwarding agent be considered as pure agent ?

Reply
Follow
Share

5 Replies

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 11 June 2018

No GST is applicable on reimbursement expense by C&F. Yes it falls under defination of Pure Agent

Harshad S Gholap (Auditor) (116 Points)
Replied 11 June 2018

hi according to me Pure Agent concept applicable when you have been entered with contractual agreement with agent and fullfill all conditions as per rule. i.e.
1 Enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both.
2 Neither intends to hold or holds any title to the goods or services or both so procured or provided as pure agent of the recipient of supply.
3 Does not use for his own interest, such goods or services so procured.
4 Receiver only the Actual amount incurred to procure such goods or services in addition to the amount received for the supply he provides on his own account.
according to above if electricity bill is on account of your c&f agent its not full fill condition no. 3 and 4 because eletricity may be used for his own or for other customer.....
consequences may arise in this case...