Franchise of courier services

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2015

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?

Amol S Joglekar

Amol S Joglekar (Expert)
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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.

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