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Vocational training provided through franchisee

This query is : Resolved 

09 May 2014 Vocational Training provided through Franchisee.

The Franchisor provide all training materials and invoice books. The Franchisee collects the fees with service tax and remit to the franchisor bank account as per the agreed ratio after deducting his share.

In the above service, Who is responsible for payment of service tax, Franchisor or Franchisee?

Or

Both of them has to pay tax for their share of income?

09 May 2014 Franchisee provides the service and collects the fees. Franchisee must be registered with Service Tax unless the centralised registration opted for.

Assuming here the Franchisee is registered as standalone premises, it should remit the ST amount and file the return.

Only basic fees excluding the ST portion should be shared between Franchisee and Franchiser.



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