31 December 2017
A company is providing exempted service of healthcare. They appoint franchisee who collect the proceeds of test and deposit total amount with the company. Company pays its franchisee a fixed amount on sales proceeds for there expenses and there share in sales proceeds. Company also charges yearly fees from franchisee. 1. Whether GST will be applicable on franchise fees received by company yearly or it will be exempt as our main service of pathology lab is exempt? 2. Whether franchisee will charge GST on amount paid to them or it will be exempt as our main service is exempt?