ca. aravinda krishna (chartered accountant) (50 Points)
16 July 2009COMPANY 'X' IS PROVIDING AYURVEDIC THERAPY TO THE PATIENTS.
'Y' IS PROVIDING THE SAME SERVICE USING THE BRAND NAME OF 'X' UNDER A FRANCHISE AGREEMENT WITH 'X'.
WHETHER AYURVEDIC THERAPY SERVICE IS LIABLE TO SERVICE TAX?
IF YES, WHETHER 10 LAKHS LIMIT IS NOT APPLICABLE IN THIS CASE?
REGARDS TO ALL
ARAVINDA
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 17 July 2009
SEVICE TAX IS NOT APPLICABLE ON AYURVEDIC THERAPY SERVICES BUT IT IS APPLICABLE ON FRANCHISE SERVES.SERVICE TAX IS LEVIED ON AMOUNT RECOVERED UNDER THE FRANCHISE AGREEMENT.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 19 July 2009
Not liable for medical services. however if for looking good without any health angle could be under heal\th / fitness clinic.
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
CAclubindia
