Service tax on franchisee

I TOOK FRANCHISEE OF COURIER AGENCY , I COLLECT SERVICE TAX ON THE COURIER BILL , AFTER TAKING BACK MY COMMISSION , I REMIT THE BALANCE TO FRANCHISER , WHAT SHALL BE MY SERVICE TAX LIABILITY AS A FRANCHISEE .
Replies (1)

Dear Soniya,

If your commission is less than Rs. 10 Lacs, than there is no service tax liability. If your received commission exceed Rs. 9 Lacs in any FY, then you must take service tax registration.

Regards,

Manoj Agarwal

 

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