My friend started an institute in Mar 2012 where coaching classes conducting for air hosts. For this, he got franchisee from Time Institute, Bangalore and he pays 10% royalty on candidate’s fee to them.
Time Institute is paying service tax according their business.
But, he used only their name & style and all the income and expenses are maintained by him.
Here, kindly clarify whether my friend comes under service tax liability or not.
Apart from this, he is also conducting other classes like spoken English in name of Prime Academy at the same premises. He maintains two bill book one in prim academy and another one in the name of Time Institute for Air Hosting classes. Is it ok or not?
CAclubindia
