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Pure Agent means a person who 

(a) enters into a contractual agreement with the recipient of service to act as his pure agentto incur expenditure or costs in the course of providing taxable service;

(b) neither intends to hold nor holds any title to the goods or servicesso 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.(nothing extra)

 

 PURE AGENT is a person who

Enters Agreement

+

Does not hold title

+

Does not use goods

+

Receives only actual amount

 

Condition to be satisfied for expenditure or cost to be exclused

All the following conditions must be satisfied 

Service provider makes payment as pure agent

+

Recipient uses goods/service /procured

+

Recipient liable to make payment for such goods

+

Recipient authorizes service provider to make payment

+

Payment made is separately indicated in the invoice

+

Exact amount only is recovered and nothing extra

 

  1. Service Tax
  2. Valuation of Taxable Service
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com.
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