iF WE(XYZ) TAKEN FRANCHISE (ABC) OF COURIER SERVICES THEN , BILL ISSUE IN THE NAME OF FRANCHISER (ABC) BUT IN THE SIGNATORY AUTHORITY NAME (ABC) THEN , WHO IS LIABLE FOR SERVICE TAX AND
XYZ REQUIRED TO REGISTERED IN THE SERVICE TAX DEPARTMENTS , HOW ACCOUNTS TREATMENTS IN THE BOOK OF XYZ?
12 February 2015
XYZ is a separate legal entity as distinct from ABC. Isn't it? XYZ is the collection of courier envelopes/boxes etc. The service tax in the bill is to be paid by the ABC. XYZ will be liable to pay service tax on its commission/fee received from ABC, subject to however exceeding the basic limit of service tax.