Place of selling franchisor goods is a branch of franchise

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 A PARTNERSHIP FIRM (XYZ) is having office at Place A1 and made a franchise agreement for selling goods of franchisor in their brand name (ABC) and keeping the same name of the office (ABC) at place A2.
Now XYZ need to mention ABC as its branch with address A2 while applying for TAN and VAT.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 September 2013 Generally in these type of transaction what is the existence and status of ABC. If you are showing your office as branch then all documents will be that of the franchiser then what is the use of an agreement. You will be the branch manger and on sales you will get the commission. Company can get registration in their name and you will look after the business and get commission. If you receive goods from other units then it is stock transfer and no CST but on sales made by ABC in the name of XYD VAt is to be paid by XYZ.