Agreement on Principal to Principal Basis

A principal-agent relationship is often defined in formal terms described in a contract. For example, if an investor buys shares of an index fund, he is the principal and the fund manager becomes his agent. As an agent, the index fund manager must manage the fund, which consists of a large number of principals` assets, in a manner that maximizes returns for a given level of risk, in accordance with the fund`s prospectus. The principal agent relationship may be entered into by all parties willing and able for the purposes of a legal transaction. In simple cases, the principal within the relationship is a single person who hires an agent to perform a task; However, other relationships under this guise have a client which is a corporation, non-profit organization, government agency or partnership. . Buyer of the dyes produced by the appraiser, but even then, since the transactions between them range from the main transactions to the main transactions, it is difficult to assess how the appraiser could be said on the basis of these circumstances. of him on a principal basis. The same situation arises with regard to Crescent Dyes and Chemicals Limited. Perhaps the position regarding Crescent Dyes and Chemicals Limited is very s. Reseller who purchases dyes from the appraiser wholesale on a primary basis. It is obvious that for the same reasons that prevailed in our discussion of the Atul Products case.

. RAMESH NAIR, Member (Judge): — The question of the evaluation of medical samples sold on a principal basis and clarified on a working basis.2. Both sides belong. Job-Work-Basis. In the case of Okasa Pvt. Ltd., samples from doctors were taken and taken from principle to principle. no free delivery of medical samples on the market. In the case of Okasa Pvt. Ltd., the sale is made on a primary basis. Therefore, the transaction value is directly covered by the. The principal-agent relationship is an agreement by which one company legally entrusts another to act on its behalf.

In a primary representation relationship, the representative acts on behalf of the client and should not have a conflict of interest in the performance of the act. The relationship between the principal and the agent is called the “agency,” and the agency`s law establishes guidelines for such a relationship. For example, OTC derivatives are concluded on a capital-capital basis, and each party is exposed to credit/counterparty risk – the risk of loss arising from the failure or inability of the other party to meet its financial obligations. In this case, there are no clearing houses between the two parties. 3. An investigation was conducted pursuant to section 133A of the Act, and the evaluating officer issued an order stating that the payment made by the appraiser to the merchant constituted a commission under section 194H of the Act. The evaluating agent concluded that the taxable person had not deducted the withholding tax on the amount of the commission paid to the distributor and therefore determined the total tax payable of Rs 40,06,679 under sections 201(1) and 201(1A) of the Act. The assessor preferred to appeal to the Income Tax Commissioner (Appeals) (hereinafter referred to as “CIT (A)”) who was admitted. CIT(A) recorded the payments made by the appraiser as an incentive in the normal course of purchase and sale. The revenue preferred an appeal against this decision to the ITAT, which was dismissed on the ground that the nature of ITA No.

399/2010 page 2 of 8 CIT vs. Jai Drinks (P.) Ltd. (Delhi HC)- In the present case, it was concluded that, since the agreement between the appraiser and the distributor clearly indicated that the agreement had been concluded on the basis of the capital of the principal to the capital, the appraiser`s payments to the distributor were incentives and rebates and were not to be treated as a commission to deduct the withholding tax under section 194H of the Act. 9. It is apparent from all that has been mentioned above that the distributor had to purchase products from the appraiser at a predetermined price in order to sell them in a given territory ….