Service tax applicability on franchisee providing services which are service tax exempt.

varun Garg (Querist) 30 January 2015 This query is : Resolved
HI

I want to know whether a Franchisee providing clinical laboratory services and generating a revenue over 10 lac P.A, would the Franchisee pay Service Tax on the Royalty paid to the Franchisor / (Brand).

The Franchisee collects samples and sends them to central laboratory setted up by the Franchisor, The Franchisor generates the medical report and the reports are routed to Patients through Franchisee.

Will there be any service tax on such royalty paid to franchisor and how will that be calculated.

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