To exclude the pure service value from the total value of the delivery, the pure agent must meet the following conditions in addition to a pure agent in the GST. 1. Enters into a contract with the recipient to issue expenses or expenses in connection with the provision of goods or services or to the consultant M/s B for the payment of his income tax return. M/s B provided the expense of the income tax return and calculated the service charges. In addition to the service charge, M/s B also imposes (as such) A, the tax paid in the service of income tax. It is clear that the responsibility for paying such a tax in the service of income tax relates to A. As such, B acts only as a mere representative in the payment of tax. 3. Incorporation Service Company: ”SUB Pvt. Ltd. ” is engaged in the legal work related to the creation of a company run by X. In addition to the service charge, ”SUB Pvt.
Ltd.” also charges X the registration and authorization fee for the company name, which has been paid to the Registrar of Companies. The fees charged by the Clerk for the registration of the company and the authorization of his name are mandatory deducted from X. ”SUB Pvt. Ltd. acts only as a pure agent for the payment of these fees. Therefore, ”SUB Pvt. Ltd.,” the recovery of these fees is a payment and is not part of the value of the offer of ”SUB Pvt. Ltd.” to X. Therefore, the relationship between the provider and the recipient with respect to the main service is based on the principle-to-principle relationship. The relationship between them in relation to other ancillary benefits is that of a pure agent. As such, the concept of pure agent has a direct influence on the total turnover of the supplier. It is therefore not included in the calculation of the registration threshold.
The GST Act provided the supplier of goods and services with another means of ensuring that expenses incurred as pure agents were excluded from total revenue. As such, the concept of pure agent has a direct influence on the total turnover of the supplier. It is therefore not included in the calculation of the registration threshold. 4. Agent`s obligations and obligations: The contract may require the agent to comply with the following obligations: A is a consulting firm. In 2017-18, its turnover was Rs 4300,000. This involved 455,000 expenses as an agent. Now, for the purpose of the evaluation, its total revenue is calculated as follows: Expenses incurred as a pure agent become relevant when determining the value of a delivery for GST delivery.
The previous para explains who is considered a pure agent. The valuation rules stipulate that expenses made as a pure agent are excluded from the value of the delivery and, therefore, from the total turnover. However, such an exclusion of expenditure as a mere softening of enforcement is only possible and only if the supplier in any event fulfils all the conditions that must be considered as a means and other conditions provided for by the regulations. 1. The claimant acts as a mere spokesperson for the recipient when making payments to third parties for goods or services purchased The expenses or costs incurred by the claimant as a mere means of performance of the recipient are excluded from the value of the taxable service if all the following conditions are met: – 2.