A is a labour contractor . A provide labour service to B at the time of making invoice B says don't charge GST on amount of ESI and PF . but Agree to Pay ESI and PF separately. And B also says show ESI and PF amount in invoice without changing GST . Is this transaction is valid . and why
please clarifying this
This mechanism can be justified using pure agency concept provided in Rule 33 of CGST Rules .
Alos, recently decided case law of Intercontinental Technocrats under service tax supports this view that reimbursable expenses should not suffer tax again.
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