https://www.taxtmi.com/forum/issue?id=5078 When a principal company pays franchisees for manpower or security placement services, the principal must discharge service tax under the reverse charge mechanism rather than the franchisee remitting tax. This liability applies irrespective of the franchisee's corporate status and is not negated by low turnover. The principal may claim CENVAT/input tax credit for reverse charge payments and for franchisee invoices, reducing the net cash tax remittance after available credits are availed. en-us Thu, 20 Dec 2012 16:00:53 +0530 Thu, 23 Jan 2025 15:57:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=5078 When a principal company pays franchisees for manpower or security placement services, the principal must discharge service tax under the reverse charge mechanism rather than the franchisee remitting tax. This liability applies irrespective of the franchisee's corporate status and is not negated by low turnover. The principal may claim CENVAT/input tax credit for reverse charge payments and for franchisee invoices, reducing the net cash tax remittance after available credits are availed. Discussion-Forum Service Tax Thu, 20 Dec 2012 16:00:53 +0530 https://www.taxtmi.com/forum/issue?id=5078