Wherther a private company is liable to service tax on refundable deposits collected from franchisees under the franchise agreement. Will dept. treat it as value of service?
please indicate relevant notification/circulars if any.
Wherther a private company is liable to service tax on refundable deposits collected from franchisees under the franchise agreement. Will dept. treat it as value of service?
please indicate relevant notification/circulars if any.
Refundable deposits are not liable to service tax.
The amount recived towards refundable deposits cannot be called a consideration and they are not charged for a taxable service. Therefore not liable. No ciruclars/ notifications to my knoweldge on this aspect.
T R SOOD & CO
New Delhi
CA Inter
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SMJ global advisors pvt ltd
New Delhi
B.Com
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CAclubindia
