Valuation in certain cases
Rule 8
Bill
GST Valuation Rules
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016
8. Valuation in certain cases
(1) Pure Agent
(a) Notwithstanding anything contained in these rules, the expenditure or costs incurred by the service provider as a pure agent of the recipient of service, shall be excluded from the value of the taxable service if all the following conditions are satisfied, namely:-
(i) the service provider acts as a pure agent of the recipient of service when he makes payment to third party for the goods and/or services procured;
(ii) the recipient of service receives and uses the goods and/or services so procured by the servi
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services procured by the service provider from the third party as a pure agent of the recipient of service are in addition to the services he provides on his own account.
Explanation.- For the purposes of this sub-rule, “pure agent” means a person who-
(a) enters into a contractual agreement with the recipient of service to act as his pure agent to incur expenditure or costs in the course of providing taxable service;
(b) neither intends to hold nor holds any title to the goods and/or services so procured or provided as pure agent of the recipient of service;
(c) does not use such goods and/or services so procured; and
(d) receives only the actual amount incurred to procure such goods and/or services.
(2) Money Changer
The value of
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