commission agent - pure agent

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... commission agent - pure agent
Query (Issue) Started By: - Richa Goyal Dated:- 25-12-2017 Last Reply Date:- 28-12-2017 Goods and Services Tax - GST
Got 4 Replies
GST
I am working as an agent and raising a bill as below service purchased as pure agent: 60000 gst on pure agent @5% 3000 commission 30000 gst @18% 5400 Total 98400/- Question: Invoice of ₹ 63,000/- for services a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s a pure agent has been raised on me and I am entitled to take credit for the same. Do I show the amount as a pure agent as 63,000/- or of only ₹ 60,000/- . Kindly guide. Reply By KASTURI SETHI: The Reply: Are you sure you are a pure agent ? I doubt you conform to the parameters of 'Pure Agent'. What is the nature of service i.e. for what commodity ? Best examples of Pure Agent ar .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e CHA, C & F Agent. Nomenclature of services of pre-GST era can be used for clarification purpose etc. Reply By Himansu Sekhar: The Reply: In this case you are not a pure agent. Pure agent portion is not taxed. In any way it can be shown as 60000 ,commission shown extra Reply By Richa Goyal: The Reply: Sir, We are travel agents and we sell the packages taken from other operators. we only char .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ge GST on the commission taken by us .. the tour packages come with GST... Since we are buying the package on behalf of the client and selling it to the client at the same rate and charge commission for the sale of package, it would be covered under pure agent services. .. Reply By KASTURI SETHI: The Reply: You should be satisfied with reply of Sh.Himansu Sekhar Ji. Pure agent is not owner of go .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ods or services. Pure agent does not purchase and sells. He provides services for and on behalf of another person. He is only intermediary. He cannot add any amount to ₹ 60'000/-. (Example given by you.) If he adds, he is not pure agent. GST is to be paid by you on amount of commission. Thus GST paid is on account of your outward supplies. How can you take ITC on this ? ITC is to be take .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n for inward supplies received by you and used in the course of business or furtherance of business.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X