Service tax liability by franchise of dth

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2013 I had one query one of my friend had taken the franchise(distributorship) of DTH. He had been registered under the service tax act as franchise as the officer of the DTH provider said. He just install the dish for the DTH provider & also distributes the same along with e-recharge (known word for the same is as LAFO). On which the DTH provider himself charged the service tax on the same and which is collected by him and deposit it to the DTH provider. Now my question is whether he is liable to pay the service tax ? And if not then can the service tax authority cancel his registraton on the ground that he need not to pay the service tax so he do not require the registration for the same? with best regards!

Mahesh

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CA PARTH SHAH

CA PARTH SHAH (Expert)
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17 February 2014 Your friend has to pay service tax on franchise fees if it exceeds 10 laca p.a. Morever service tax authority dont cancel the registration on its own. Assesee have to cancel the registration if he is n ot laible to pay service tax

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