Pure agent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2017 Hello, My client is taking pure agent service from a firm where the firm is purchasing goods and delivering them to my client’s customers. My question is how should the client book these expenses, as purchase of books or something else?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 November 2017 It will not fall under pure agent. It will fall under trading of goods GST applicable. It has to be accounted as purchases only.

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2017 How will you identify someone as a pure agent?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 November 2017 Pure agent no profit involved. No profit added in reimbursement of expenses.
Here profit/commission on sale will be there hence it is not pure agent.