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. (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


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.