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Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2014 I am having the franchise of Bachphan Play School that requires me to pay royalty on fees collected by me at a specified rate. I want to know is service tax applicable on royalty payment & if yes can i claim the threshold exemption of Rs. 10 Lakhs available?

Annu Agarwal

Annu Agarwal (Expert)

28 August 2014 Service tax shall be paid by the franchisor and the same shall be charged in his bill.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2014 Can't I claim the threshold exemption limit available to me? If not then can i claim the service tax paid while filling the return & get refund as i don't have any other taxable service. Please guide.

Annu Agarwal

Annu Agarwal (Expert)

29 August 2014 Sir threshold limit is available to service provide .So if your franchisor is below the threshold limit he can claim the threshold limit and not charge the service tax on his royalty income.

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Annu Agarwal

Annu Agarwal (Expert)

29 August 2014 you cannot claim refund of service tax paid.

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