In Re: Premier Vigilance & Security Pvt. Ltd.
GST
2018 (11) TMI 337 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (18) G. S. T. L. 878 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 2-11-2018
Case No. 23 of 2018, Order No. 20/WBAAR/2018-19
GST
VISHWANATH AND PARTHA SARATHI DEY MEMBER
Applicant's representative heard Ms. Shivani Shah, Advocate
1. The Applicant stated to be, a provider of security services to the Bank, seeks a Ruling on chargeability of GST on the Toll Taxes reimbursed by its clients or the ability to claim it as a deduction under Rule 33 from the value of supply, being expenditure incurred as a pure agent under the CGST/WBGST Acts, 2017 (hereinafter referred to as the “the said GST Act”).
Advance Ruling is admissible under Section 97(2)(e) & (g) of the said GST Act.
The Applicant submits that the question raised in the Application has neither been decided by nor is pending before any authority under any provisions
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yment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and
(iii) the supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account.
4. Explanation to the Rule 33 defines –
For the purposes of this rule, the expression ―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 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 so procured; and
(d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for suppl
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n that toll and parking charges will be paid on the actual amount. But the Banks do not specifically authorize the Applicant as a 'pure agent' or acknowledge payment of the toll charges as their own liability.
The Applicant admits in the Application about owning the vehicles. The toll is charged for providing the service by way of access to a road or bridge (SAC 9967). The Applicant, being the owner of the vehicles, is the recipient of the service provisioned on payment of toll. The Applicant admittedly is the beneficiary and liable to pay the toll, which is compulsorily levied on the vehicles. The expenses so incurred are, therefore, cost of the service provided to the Banks.
Reimbursement of such cost is no disbursement, but merely the recovery of a portion of the value of supply made to the Banks.
The Applicant is, therefore, not acting in the capacity of a 'pure agent' of the Bank while paying toll charges. Such charges are costs incurred, so that his vehicles can access roads/b
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