Service Tax- Rule 5(2)

Hi,

Can you help me understand rule 5(2) of Service tax:

Payments made by service provider as ‘pure agent’ of service receiver and recovered from service receiver are excluded for purpose of valuation [rule 5(2)]

thanks

 

Replies (3)
Could anybody throw some light on the query above. i have the same question for you all. thank you

ya pure agent is exempted from service tax liablity

can nebody explain wit example..

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