Pure agent means a person who
Enters into a contract with the recipient of service to act only as his agent to incur expenditure or costs in the course of providing taxable services
Has no intention to hold the title to goods or services provided (to service recipient) as pure agent
Does not use the procured goods or services
Receives only the actual amount incurred to procure the services or goods.
Example: Royal Agency entered with an agreement with Isac Computers to procure advertising services by acting as a Pure Agent. Royal Agency procured the advertising services from ADMAG.
In the above example
Royal Agency is a pure agent
Isac Computers is the recipient of service
ADMAG is the service provider
Expenses or cost incurred by the service provider acting as a pure agent can be deducted from the total service charge to get the taxable amount.
'Pure Agent' has been shared with
