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SERVICE TAX ON FRANCHISE RECEIPT

This query is : Resolved 

03 June 2009 In one of my company we have three premises and for each of them we get franchise receipt Per month as per contract

Averge Franchise receipt of each of the them individually is below Rs. 10 lacs but in total it is around 25 lacs.

Since we are receiving franchise receipt do we have to pay service tax

Is service tax applicable on Franchise receipts.

What would happen if we would have received rent instead of franchise receipt

05 June 2009 Nomenclature does not decide the essence of the contract.
If the same is for rent there is a view that rent is not a service at all which has been helf by the Delhi HC. After talking the call can go ahead.


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