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TMI BlogIntermediaryX X X X Extracts X X X X X X X X Extracts X X X X ..... er person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account. The concept of intermediary was borrowed in GST from the Service Tax Regime . The definition of intermediary in the Service Tax law as given in Rule 2(f) of Place of Provision of Services Rules, 2012 issued vide notification No. 28/2012-ST, dated 20-6-2012 was as follows: intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the main service) or a supply of goods, between two or more per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between the principal and the third party; and ( ii ) the supply of his own service (agency service) to his principal, for which a fee or commission is usually charged. For the purpose of this rule , an intermediary in respect of goods (such as a commission agent i.e. a buying or selling agent, or a stockbroker) is excluded by definition. Also excluded from this sub-rule is a person who arranges or facilitates a provision of a service (referred to in the rules as the main service ), but provides the main service on his own account. When he acts as an intermediary Where the freight forwarder acts as an intermediary, the place of provision will be his location. Service tax will be payable on the services provided by him. However, when he prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;:- ( i ) Travel Agent (any mode of travel) ( ii ) Tour Operator ( iii ) Commission agent for a service [an agent for buying or selling of goods is excluded] ( iv ) Recovery Agent Even in other cases, wherever a provider of any service acts as an intermediary for another person, as identified by the guiding principles outlined above, this rule will apply. Normally, it is expected that the intermediary or agent would have documentary evidence authorizing him to act on behalf of the provider of the 'main service'. Illustration - A freight forwarder arranges for export and import shipments. There could be two possible situations here- one when he acts on his own account, and the other, when he acts as an intermediary. - Manuals - Rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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