Franchise Service is leviable to Service Tax as per the Act. The Initial Payment (Non Refundable) made by the Franchisee to Franchisor to get the rights, Is it leviable to service tax ?
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Service tax applicability on franchise services
Replies (4)
Yes initial payments made to franchiser is liable to tax. But it is cenvat credit if franchisee is providing taxable services.
But Franchisee is also paying an 1% royalty on turnover made. Then i felt the initial payment is not liable since he is making the payment to begin the Franchise agreement
Initial payments except refundable deposits will form part of value of services.
procedure of levy of service tax and tds deduction on franchisee turnover to franchisee by frnanchiser? in kerala
please help me and forward details of this .......... to my id rj.akkara @ gmail,com
also details of professional tax slab in kerala
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