TMI Blogclassification of Service (SAC code and rate of Tax) RequiredX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, Air travel bill (flight tickets) was charged to my client (i.e,invoice in the name of our client). we paid the said amount to travel agency. Later on, we need to raise the invoice on our client for air travel charges paid(incl GST) + service charge (i.e, our income) @ 5%. Air travel agency (Supplier) invoice details: SAC code :99642 Rate of Tax: 5% Here we are just a mediators to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplete the transaction. IS it comes under Pure agent?? So, my issues are enumerated as below: 1. SAC Code ? 2. Rate of Tax ? 3. Valuation for GST charge (i.e, tax to be charged only on service charges or else travel charges+Service charges) 4. Is the supplier SAC code and tax rate can be used for issuing tax invoice to my client ? here the issue if we charge the aforesaid one, we are not d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealing with travel agency business. 5. or can we use the SAC code for other support services Pls explain Thanking in advance. Regards Gowtham - Reply By KASTURI SETHI - The Reply = As per Rule 33 of the CGST Rules, 2017 a pure agent means a person who : (a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of supply of goods or services or both; (b) neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply; (c) does not use for his own interest such goods or services procured; and (d) receives only the actual amount incurred to procure such goods or services in addition to the amount recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved for supply he provides on his own account. To qualify as 'pure agent', one of the conditions is to enter into contractual agreement with the receiver of service. Have you entered into contractual agreement ? Pl. confirm. - Reply By SSOE SSOE - The Reply = Dear Sir, we didn't entered in to any Agreement. I believe that we didnt come under Pure agent because we are charging s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice charge on that and also other conditions not satisfied. Pls explain the 5 queries ..... Waiting for your response. - Reply By KASTURI SETHI - The Reply = Query-wise my views are as under:- 1.998599 2.18% 3. Only service charges or commission charges (whatever you may call). 4. Cannot be used. The nature of your service is different. 5. Yes. Other support services n.e.c. - Reply B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y SSOE SSOE - The Reply = Thanks Mr.Kasturi Sethi for the immediate response - classification of Service (SAC code and rate of Tax) Required - Query Started By: - SSOE SSOE Dated:- 28-7-2020 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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