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Itc on royalties paid for franchise in case of hotel industries

ITC / Input 644 views 4 replies

Dear Members

 

I am running a franchise based hotel industry.

I have to pay GST on Royaltie to be paid for Franchisee owner, can i claim a ITC of the said GST Paid on same  

Replies (4)
Yes you can but ... if in your hotel room terif is below 7500/- , & have resuturant then the ITC credit has to be claim Proptionately on royalty paid (As per Rule 42)

what if i have only dine facility and register under Composition Levy

when you are registered as composit dealer then in anyway you cannot claim itc

moreover the hotel service provider (dining) cannot opt for composit scheme, so its better to opt for reqular scheme

Can a composition dealer gave his franchise to another? If yes, then what is the GST implication on that transaction? pls clarify.


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