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Service Tax Liability on Franchisor of BSNL

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(Querist)
16 March 2008 Whether holder of BSNL franchisee is liable for payment of service tax on commission paid by BSNL to such franchisee, even if BSNL chages the service tax on gross value of prepaid vouchers?

If they are not liable for paymen of service tax then kindly quote the relevant case law, if any.
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annapurna

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annapurna (Expert)
28 March 2008 Wherethe BSNL charges the service tax on gross value of prepaid vouchers, the service tax is also liable on commission paid by BSNL to such franchisee as such consideration is towards franchise services
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