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.