Topic

Pure Agent

3 articlesLatest May 2026
Service Tax Valuation | Wall Rent Includible in Advertising Service Value; Flex Costs Excluded If Separately Invoiced as Goods : CESTAT Chandigarh
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Service Tax Valuation | Wall Rent Includible in Advertising Service Value; Flex Costs Excluded If Separately Invoiced as Goods : CESTAT Chandigarh

CESTAT Chandigarh ruled that advertising agencies must include wall rent payments in the taxable value of their services, as it is an essential cost directly tied to service delivery. However, printed flex costs are excluded if billed separately as goods and taxed accordingly, clarifying the boundary between service and supply in advertising contracts.

Service Tax Valuation | Reimbursable Expenses Excluded from Taxable Value Under Pure Agent Rule: CESTAT Chennai
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Service Tax Valuation | Reimbursable Expenses Excluded from Taxable Value Under Pure Agent Rule: CESTAT Chennai

CESTAT Chennai reaffirms that reimbursable expenses collected by service providers do not form part of taxable value under the Service Tax Valuation Rules, provided the 'Pure Agent' conditions are met. The ruling shields businesses from retrospective tax demands on expenses like freight, warehousing, and survey charges, reinforcing the Supreme Court's precedent invalidating Rule 5(1).

Section 65(82) Finance Act | Supply of Water to Vessels Constitutes Taxable 'Port Service' Pre-July 2010 : CESTAT Ahmedabad
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Section 65(82) Finance Act | Supply of Water to Vessels Constitutes Taxable 'Port Service' Pre-July 2010 : CESTAT Ahmedabad

CESTAT Ahmedabad rules that supplying water to vessels within port premises qualifies as a 'port service' under Section 65(82) of the Finance Act, 1994, making it liable for service tax even if characterized as a sale of goods. The ruling clarifies that reimbursement charges for such services attract tax obligations, impacting port operators and shipping entities.

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