Service tax on Franchise Services


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Querist : Anonymous

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Querist : Anonymous (Querist)
09 March 2011 Is service tax applicable on branded showrooms, where only expenses of employees are reimbursed by the Franchisor and no managerial expertise is provided to Franchisee?

09 March 2011 Details of the arrangement is not clear. Anyway, if you are trading goods supplied by franchiser, no service tax on trading profit. If you sell goods on their behalf for commission, it is liable to service tax under BAS.When they reimburse for manpower, it may be added to the value of the service under BAS.

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 March 2011 It is showroom of branded cloths.




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