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TMI Blog2018 (11) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice 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/bridges to provide security services to the recipient - Toll charges paid are not, therefore, to be excluded from the value of supply under Rule 33. GST shall, therefore, be payable at the applicable rate on the entire value of the supply, including toll charges paid. Ruling:- Toll charges paid are not to be excluded from the value of supply under Rule 33. GST shall, therefore, be payable at the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng National and State Highways and the Applicant pays toll charges to both NHAI and State Authority, which is reimbursed by the client Banks. 3. Rule 33 of the GST Rules states that:- 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 authorization by such recipient; (ii) the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upply made by A to B. 5. The Applicant submitted excerpts from the agreements entered with the client Banks. The Agreement may be considered as the prototype of all Agreements made with the various client Banks and all discussions regarding the Agreement is to be taken as relevant to and applicable for all the Agreements entered into by the Applicant with the client Banks. The agreements mention 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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