Service tax

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dinesh (Querist)
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20 October 2011 One of the client is running a commercial training for spoken english ( Franchisee) and also provide coaching as an independant units also . Franchisee are giving certain amount per admission to main centre. Now the question arises:

a) Whether the fees collected by Main Center are to be considered by the franchisee centre for computing threshold limit exemption?

provided Service tax no. taken by franchisee is not on the name of MAIN CENTER.

please answer..

CA Rudresh SR

CA Rudresh SR (Expert)
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20 October 2011 If you are running training centre under a brand then treshold limit of 10 lacs does not apply. So srevice tax has to be collected & remitted to the govt with in the due date.
For independent units till 10 lacs exemption is available.

dinesh

dinesh (Querist)
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20 October 2011 But sir this unit is acting both as a franchisee and also as a independent unit.

but ST no is taken as a independent unit so can we also charge ST on bill to student for the franchisee also.

What will happen if Service tax is not charged by the institute in billing on the basis that threshhold limit has not been exceeded.