Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Pure Agent Doctrine | Reimbursed Expenses Excluded from Taxable Value for Clearing & Forwarding Agents Under Rule 6(1)(viii) : CESTAT Chennai
CESTAT Chennai rules that reimbursed expenses like freight, labour, and stationery do not form part of the taxable value for clearing and forwarding agents when they act as pure agents, reinforcing the strict application of Rule 6(1)(viii). This clarifies a critical boundary for service providers who pass through third-party costs, shielding them from unintended tax liability on non-income receipts.