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Service Tax & VAT

Service Tax (Legacy) 651 views 2 replies

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.

 

Replies (2)

Dear Siva,

                        VAT is State tax and you donot mention for which state you are talking ? please mention it and give full detail of your case sothat I can delp you. my email id is sachinagarwalcallb @ gmail.com

We are in Karnataka State but do have franchisees all over India


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