In the instant case, the applicant is the person who is liable to pay salary/wages to the work-men employed by him under ‘Employment Agreement’ to provide manpower services to his clients and just showing such amount in a separate manner in the invoice doesn’t shift his liability on the recipient of services and makes him qualify as a ‘pure agent’ in terms of rule 33 of the CGST Rules.
Valuation of supply— Section 15 of CGST Act— In the instant case, the applicant submits that he is engaged in supplying manpower services to his clients on daily/ monthly basis for different jobs as required by his clients The issue involved in the instant case is to decide whether the applicant can be regarded as ‘pure agent’ of his client who receives such supply and whether value of supply of services in case of pure agent as prescribed in rule 33 of the CGST Rules 2017 is applicable in the instant case.
Held that— In the instant case, undisputedly the applicant is the person who is liable to pay salary/wages to the work-men employed by him under ‘Employment Agreement’ to provide manpower services to his clients and just showing such amount in a separate manner in the invoice doesn’t shift his liability on the recipient of services and makes him qualify as a ‘pure agent’ in terms of rule 33 of the CGST/WBGST Rules, 2017. The contention of the applicant that the recipient of services authorizes him to make payment of salary, wages and all allowances on behalf of him doesn’t hold water on the same ground that such amount is actually payable by the applicant himself.
In the instant case, the applicant is the person who is liable to pay salary/wages to the work-men employed by him under ‘Employment Agreement’ to provide manpower services to his clients and just showing such amount in a separate manner in the invoice doesn’t shift his liability on the recipient of services and makes him qualify as a ‘pure agent’ in terms of rule 33 of the CGST Rules.
Valuation of supply— Section 15 of CGST Act— In the instant case, the applicant submits that he is engaged in supplying manpower services to his clients on daily/ monthly basis for different jobs as required by his clients The issue involved in the instant case is to decide whether the applicant can be regarded as ‘pure agent’ of his client who receives such supply and whether value of supply of services in case of pure agent as prescribed in rule 33 of the CGST Rules 2017 is applicable in the instant case.
Held that— In the instant case, undisputedly the applicant is the person who is liable to pay salary/wages to the work-men employed by him under ‘Employment Agreement’ to provide manpower services to his clients and just showing such amount in a separate manner in the invoice doesn’t shift his liability on the recipient of services and makes him qualify as a ‘pure agent’ in terms of rule 33 of the CGST/WBGST Rules, 2017. The contention of the applicant that the recipient of services authorizes him to make payment of salary, wages and all allowances on behalf of him doesn’t hold water on the same ground that such amount is actually payable by the applicant himself.