Hi! Would like to know whether a coaching class can claim credit of the Service Tax it pays on the franchisee fee to the franchisor, against its own service tax liability??
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 10 January 2011
if the franchise service confirms the criteria of "input service required in relation to output service" then input credit allowed, otherwise not.
Alpana
(Consultant)
(91 Points)
Replied 10 January 2011
yeah apparently it does - i mean the franchisor is providing the study material n ofcourse its name to the coaching class. So i understand that the franchise service confirms the criteria of "input service required in relation to output service"- please correct me if i m wrong
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 10 January 2011
franchise word does not indicate any specific work / sale done, its assessee own discretion to take credit on such services, and satisfy the audit party about the establishment and its utility towards main service provided with documents.
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 11 January 2011
The franchisee provides the know how/ maybe the study pattern etc and without that the coaching would not be upto the mark. It is defintely an input service and eligible.
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 11 January 2011
The franchisee provides the know how/ maybe the study pattern etc and without that the coaching would not be upto the mark. It is defintely an input service and eligible.
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