https://www.taxtmi.com/forum/issue?id=120874 Revenue sharing paid by a franchisee to a foreign franchisor for continued use of a brand, trademark, know-how, or business model may form part of royalty and be taxable as import of service under the reverse charge mechanism. Royalty is not limited to a lump-sum fee and may also include a variable percentage of revenue where both payments are for the same franchise or brand licensing service. Taxation of both components is treated as tax on separate parts of the same consideration, not double taxation, unless the payment is genuinely unrelated to brand rights or forms a pure profit-sharing arrangement. en-us Thu, 16 Apr 2026 17:37:53 +0530 Mon, 20 Apr 2026 20:10:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=120874 Revenue sharing paid by a franchisee to a foreign franchisor for continued use of a brand, trademark, know-how, or business model may form part of royalty and be taxable as import of service under the reverse charge mechanism. Royalty is not limited to a lump-sum fee and may also include a variable percentage of revenue where both payments are for the same franchise or brand licensing service. Taxation of both components is treated as tax on separate parts of the same consideration, not double taxation, unless the payment is genuinely unrelated to brand rights or forms a pure profit-sharing arrangement. Discussion-Forum GST Thu, 16 Apr 2026 17:37:53 +0530 https://www.taxtmi.com/forum/issue?id=120874