Service tax on coaching and training center under franchisee

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

31 March 2014 A pertnership firm has taken franchisee of jet airways. The firm has to pay 1 lac for 5 months, and 30% receipt as a royalty which the firm gets as a coaching fees.

The firm deposits total amount in the franchisor's bank account and then franchisor transfers 70% of total amount to the firm.

The question is when the firm is liable to pay service tax (weather on receipt of coaching fees or on receipt of 70% amount from franchisor),
at what amount the service tax will be leviable?

sudarshan

sudarshan (Expert)
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01 April 2014 firm is providing coaching service. so it has to collect ST from trainees.
It will have to pay ST on royalty also as IPR service.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2014 The question is when the firm is liable to pay service tax (weather on receipt of coaching fees or on receipt of 70% amount from franchisor), at what amount the service tax will be leviable?

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