A franchisee has provide service to company and issued invoice of Rs 100000 exclusive of service tax , and submits nil returns so now can the company is liable to pay service tax on the amount for which they recive service from franchisee.
What are tax implications and liability to both company and franchisee ? Does any CENVAT rule applicable here?
Sir,
In this regard if you are provided taxable service under Reverse charges then receiptent liabilty to pay service tax in his ration or rest service tax is to be pay by you. The rate of service tax is applicle as per Frenchisee if RMC not appliocale whom received the service tax then you liabilty poay the service tax @ 12.36%. plz check the RMC is applicable for receiver or not. Further you having the queries then forward the same.
CAclubindia
