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TMI BlogGST on amount received from C&F agentX X X X Extracts X X X X X X X X Extracts X X X X ..... GST on amount received from C&F agent X X X X Extracts X X X X X X X X Extracts X X X X ..... GTA. Dealer is getting this amount towards reimbursement of transportation cost. On emergency, the dealer has arranged his own lorry to transport the goods from C&F agent warehouse to his place. Since he has born the cost of transportation on behalf of C&F agent, C&F agent has reimbursed this cost to him. Is it taxable under GST? The dealer does not have any invoice relationship with C&F agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Goods invoicing is direct between the dealer and Cement company. The cement company has appointed the C&F agent for warehousing, logistics support etc. Reply By Shilpi Jain: The Reply: On the transportation expense incurred has the dealer paid GST under RCM? Reply By Shilpi Jain: The Reply: For levying GST on the income accounted, the nature has to be ascertained. In the present case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement with C&F has to be seen and if transportation was in his scope, ideally the C&F should have charged GST on the amount including transportation services. Reply By Deepak Kumar: The Reply: Here, In cement industry, goods are inclusive of freight. So, Dealer have paid the freight at the time of purchase. For transportation, the cement company appoints C&F agent. So, C&F agent does the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansportation on behalf of the company and raises the invoice to the company. (yes, here he is working as Pure Agent). He is not charging anything from the dealer. However, some times, when C&F agent express his un-availibility to transport the goods from his godown to dealer's place, then he requests dealer himself to arrange his own vehcile to lift the goods . In this case, the dealer has li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fted the goods from C&F agent's godwon and incurred some expenses. These expenses are towards freight only either from his own lorry or hired lorry (Non-GTA). These expenses have been reimbursed by the C&F agent calculated per cement bag basis. Now, at the time of reimbursment, C&F has deducted TDS under 194C (which is not correct as per some High court judgment also). So, whether this income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... become taxable under GST for dealer? Reply By Shilpi Jain: The Reply: Get the transpoter issue invoice on C&F for the transport charges. No liabiltiy on dealer as he is only making and getting payment. Reply By Sadanand Bulbule: The Reply: From the cumulative reading of all the queries, it is clear that, there is no supply of service. Hence it is outside the domain of Section 7. Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By KASTURI SETHI: The Reply: Why the dealer has shown reimbursement of transportation cost as income in P & L Account ? How reimbursement can be income in this scenario ? Was the dealer not aware of the concept of re-imbursement ? Reply By Deepak Kumar: The Reply: Thanks for the replies. Here, in these transactions, the dealer humself is a tempory transporter for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his own goods . Since, transportation cost has already been paid to the Cement Company on FOR basis . As invoice value is inclusive of freight. Later on, after invoicing, as per the agreement between C&F and the Cement Compmay, the C&F agent has to transport the goods/cement to Dealer premises and C&F ageent will bill to Cement Company for the transportation. Now, here, when in some cases, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the C&F agent, does not have the truck to send the goods to dealer premises, he asks dealer himself to arrange his own lorries to carry his (Dealer's) goods. So Dealer lifts the goods from C&F agent from his own lorries. Since, the dealer has already paid the inward freight to Cement compnany bases in purchase invoice. This temporary arangment would be additional burden to him. Hen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, C&F agent reimburses this cost to Dealer. Yes, Kasturi sir is right here.. this should not be mentioed as additional income here, as its a reimbursement of the cost. As per my view.. income in 26AS should be exempted from GST as no services were provided to them. further, even if the delaer shows this as transportation income..as per which section its taxable under GST. Services by way of tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsportation of goods by road is exempted(for other than GTA). Here, Dealer is not a GTA. Reply By KASTURI SETHI: The Reply: Income mentioned in Form 26 AS cannot be treated as exempted from GST. Such income is subject to verification of the Books of Account maintained by the registered person.. Examination of Form 26 AS can result in detection of tax not paid/short paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .
Reply By KASTURI SETHI:
The Reply:
A C & F Agent is the best example of pure agent. This aspect should also be kept in mind while arriving at decision in such scenario. X X X X Extracts X X X X X X X X Extracts X X X X
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