FRANCHISE AGREEMENTS

THE FEE CHARGED FROM FRANCHISEE BY FRANCHISER IS CHARGED TO SERVICE TAX AND FRANCHISER IS LIABLE TO PAY SERVICE TAX ON THIS FEE, HOWEVER CAN ANY BODY EXPLAIN WITH RELEVENT REFERENCE THAT THE PROFIT SHARING BASIS BUSINESS WITH FRANCHISEE IS ANYWAY COVERED UNDER THE NET OF SERVICE TAX. I MEAN  IF A FRANCHISER ENTERS WITH A FRANCHISEE ON A CONDITION OF SHARING GROSS PROFIT AND SHARING OTHER OPERATING EXPENSES AND OTHER CAPITAL COSTS ETC. THEN WHETHER THE AMOUNT SO CHARGED WILL BE TREATED AS A FRANCHISE FEE. KINDLY DO REPLY IN THE LIGHT OF THE FACT THAT SERVICE TAX IS LIABLE ON FRANCHISE FEE.