query regarding conditons of being a pure agent

1602 views 2 replies

Hello friends ,

Can anyone please tell me what are the conditions to be fulfilled by a person to become a pure agent under service tax ?

and under which section of service tax these conditions have been specified?

Plz plz plz plz reply

thanking in anticipation.

Replies (2)

Please refer Service Tax Determination of Value Rules.

Pure Agent as per this rule..

"“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"

Thank u very much sir.

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