Rule 33: Definition of Pure Agent
- Agency supplies are different from ‘pure agent’ in relation to valuation
- There is a payment made to third party by a payer
- Payer is a supplier of goods or services or both to a beneficiary (client)
- Underlying obligation to pay third party is of the beneficiary (client)
- Payment by payer is to discharge beneficiary’s obligation toward third party
- Third party enjoys recourse to beneficiary in case of non-payment by payer
- For example, income-tax liability of a client is paid by the CA