21 June 2016
Respected All, we are providing service of commercial coaching in delhi as well as other state in india. We had taken single registration in delhi and pay service tax on all our service tax being provided all place of service being provided in india without taking centralized number. I know there is a default in taking centralized registration. but i had pay my all liability. there are also some franchisee in other state on which we share the income at 75% or 80% . The payment would be given to him along with service tax if he has taken service tax registration.
Currently business process of franchisee - 100% revenue booked by the company and pay service tax accordingly and as & when they deposit our cash in the bank account. We will paid back their share 75/80% as per agreement between us. If they take registration under service tax under franchisee services or business auxiliary services, then we will paid back their share along with service tax. We take cenvat credit of the amount we paid as service tax to franchisee.
Now department contention - Sri ganganagar take registration under franchisee services and pay service tax on 75% . Now department is claiming that 100% service tax shall be paid in ganga nagar. And ask ganganagar franchisee to pay balance 25% tax. He also said if you are paying from delhi then give Centralized service tax number of that, which we don,t have right know. What is the repercussion of that ? Do we need to pay service tax separately? How can we claim the amount we paid in delhi?
CAclubindia
