Franchisee service tax
This query is : Resolved
27 November 2008
Hi,
I have a franchisee from leading brand for Advance computer courses. I pay royalty to them on fees collected from students. There are two points of service tax :
1) Service Tax on Royalty which I know is necessary to be paid to the Franchisor
2) But I am not sure if I myself need to charge Service Tax from Students since I am sure my collection will be below 10 Lakhs limit. I was told by my friend that I would be required because I am a franchisee. If my institute was unbranded then only I can use 10 Lakhs limit.
Please advice..
Thanks
Ashish
I have a franchisee from leading brand for Advance computer courses. I pay royalty to them on fees collected from students. There are two points of service tax :
1) Service Tax on Royalty which I know is necessary to be paid to the Franchisor
2) But I am not sure if I myself need to charge Service Tax from Students since I am sure my collection will be below 10 Lakhs limit. I was told by my friend that I would be required because I am a franchisee. If my institute was unbranded then only I can use 10 Lakhs limit.
Please advice..
Thanks
Ashish
27 November 2008
Your friends opinion is correct.
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