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Service Tax - Highlights / Catch Notes

Home Highlights July 2020 Year 2020 This

Demand of Service Tax - Franchise Service - In this case both ...


Franchisee's Debt Assumption for Shares Triggers Service Tax Demand; No Alternative Arrangements Considered in Ruling.

July 16, 2020

Case Laws     Service Tax     AT

Demand of Service Tax - Franchise Service - In this case both the franchisee taking over the liability of debt of the franchisor and paying an amount by way of shares has been quantified in terms of money and that is how the SCN has computed the demand. There is no doubt that the entire amount has been paid only for consideration of this service. There is no other arrangement in this case. Therefore, the case is against the appellant on merits.

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