Goods and Services Tax – Started By: – ROHIT GOEL – Dated:- 24-1-2018 Last Replied Date:- 31-1-2018 – WHETHER A SERVICE PROVIDER WHO GET REIMBURSEMENT OF TRAIN TICKETS, AIR TICKETS ON ACTUAL BASIS LIABLE TO PAY GST @18% ON THE COST OF TICKETS – Reply By Ganeshan Kalyani – The Reply = Can you please elaborate your query with an example. – Reply By ROHIT GOEL – The Reply = Example: A chartered Accountant travel by air and cost of air ticket reimbursed by client. Question whether gst is to be charged on cost of air ticket along with audit fees – Reply By KASTURI SETHI – The Reply = NOT required to pay GST on cost of tickets. Cost of ticket cannot be part of transaction value because it does not go into your pocket. You pay and then get reimbursement. GST already paid. No double taxation. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Whether the service provider can take input tax credit on the air ticket of Chartered Accountant? – Reply By Alkesh Jani – The Reply = Sir, In this regards
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n picture. In that case also the CA will bill separately for ticket inclusive of GST amount without creating liability for GST but for that all the condition of pure agent has to be fulfilled by client as we as pure agent. – Reply By KASTURI SETHI – The Reply = Yes. Sir. I agree with you to the extent of concept of pure agent. C.A. works as pure agent also. – Reply By Himansu Sekhar – The Reply = With humility I slightly differ from Sri Ruia's view. As per Rule 33 of the CGST Rules,2017 .Value of supply of services in case of pure agent.-Notwithstanding anything contained in the provisions of this Chapter, the expenditure or costs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely,- (i) the supplier acts as a pure agent of the recipient of the supply, when he makes the payment to the third party on authorisation by such recipient; (ii) the payment made by the pure agent
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irm A is engaged to handle the legal work pertaining to the incorporation of Company B. Other than its service fees, A also recovers from B, registration fee and approval fee for the name of the company paid to the Registrar of Companies. The fees charged by the Registrar of Companies for the registration and approval of the name are compulsorily levied on B. A is merely acting as a pure agent in the payment of those fees. Therefore, A s recovery of such expenses is a disbursement and not part of the value of supply made by A to B. In the instant case, the expenses towards the travel are n the interest of the client. It is not a pure agent concept. Be that the case, every body will not include many expenses like Hotel bills, Restaurant bills and other expenses incurred by the CA during the provison of the service. – Reply By Ganeshan Kalyani – The Reply = CA should not enjoy the benefit of air travel. He just has to incur the cost. The benefit shall be taken by the client. If this is t
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