https://www.taxtmi.com/caselaws?id=234943 Royalty paid under a franchise agreement for use of a trade mark was treated as consideration for a franchise service, not as taxable transfer of the right to use goods under the Kerala Value Added Tax Act, 2003. The agreement gave only a limited, controlled permission to use the trade mark, while the franchisor retained ownership, effective control, and the ability to grant similar permissions to others; the franchisee acquired no exclusive, permanent, or assignable right. Because the arrangement did not place deliverable goods in the franchisee's possession to the exclusion of the franchisor, and instead included support, standardisation, supervision, and promotional assistance, it fell outside the VAT net and within the concept of franchise service under the Finance Act, 1994. en-us Mon, 24 Jun 2013 00:00:00 +0530 Thu, 17 Jul 2014 13:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=234943 Royalty paid under a franchise agreement for use of a trade mark was treated as consideration for a franchise service, not as taxable transfer of the right to use goods under the Kerala Value Added Tax Act, 2003. The agreement gave only a limited, controlled permission to use the trade mark, while the franchisor retained ownership, effective control, and the ability to grant similar permissions to others; the franchisee acquired no exclusive, permanent, or assignable right. Because the arrangement did not place deliverable goods in the franchisee's possession to the exclusion of the franchisor, and instead included support, standardisation, supervision, and promotional assistance, it fell outside the VAT net and within the concept of franchise service under the Finance Act, 1994. Case-Laws VAT and Sales Tax Mon, 24 Jun 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=234943