we run a Preschool chain,
1) We sign up franchisees & for the franchisee fees we receive we charge 4% VAT & 10.5% Service Tax
2) we charge ongoing royalty & on that we charge Service tax of 10.5%
3) we provide books, uniforms etc., on which we charge VAT of 4%
are we correct in applying the relevant rates, Please guide, there is too much confusion on this and every tax consultant is giving us different advise.
CAclubindia
