9911796707
TMI BlogScope of principal and agent relationship under Schedule I of CGST Act, 2017 in the context of del-credre agent.X X X X Extracts X X X X X X X X Extracts X X X X ..... ent relationship under GST in the context of del-credre agent (hereinafter referred to as "DCA"). In order to clarify these issues and to ensure uniformity of implementation across field formations, the Board, in exercise of its powers conferred under section 168 of the Assam Goods and Services Tax Act, 2017 (hereinafter referred to as "Assam GST Act") hereby clarifies the issues in succeeding paras. 2. In commercial trade parlance, a DCA is a selling agent who is engaged by a principal to assist in supply of goods or services by contacting potential buyers on behalf of the principal. The factor that differentiates a DCA from other agents is that the DCA guarantees the payment to the supplier. In such scenarios where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he customer, either himself or through DCA, the DCA does not fall under the ambit of agent. * In case where the invoice for supply of goods is issued by the DCA in his own name, the DCA would fall under the ambit of agent. 2. Whether the temporary short-term transaction based loan extended by the DCA to the recipient (buyer), for which interest is charged by the DCA, is to be included in the value of goods being supplied by the supplier (principal) where DCA is not an agent under Para 3 of Schedule I of the Assam GST Act? In such a scenario following activities are taking place: 1. Supply of goods from supplier (principal) to recipient; 2. Supply of agency services from DCA to the supplier or the recipient or both; 3. Supply of exte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra 3 of Schedule I of the Assam GST Act, the temporary short-term transaction based credit being provided by DCA to the buyer no longer retains its character of an independent supply and is subsumed in the supply of the goods by the DCA to the recipient. It is emphasised that the activity of extension of credit by the DCA to the recipient would not be considered as a separate supply as it is in the context of the supply of goods made by the DCA to the recipient. It is further clarified that the value of the interest charged for such credit would be required to be included in the value of supply of goods by DCA to the recipient as per clause (d) of sub-section (2) of section 15 of the Assam GST Act. 4. This Circular is clarificatory in nat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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