Is franchisee service taxable or not

Namastey sir

I have a query whether Franchisee service is taxable or not under the provisions of Service tax?
why the royalty amount come under the service tax. As per negative list of service tax education upto certain level are not eligible for service tax?
Is as a Franchisee i am covered under negative list or not?

please according to the link of tax guru ""
i think i not covered and i need not to pay any kind of service tax on royalty.
and if i covered, then how?
Please answer my query with an proof example and in details.
Even if needed please call and explain. I am providing you my details below.

Type of business
I operate a franchisee of a play school under the brand name Bachpan-A-Play school.
The Company is Situated in New Delhi and are the Franchisor of Bachpan-A-Play School.
I am Supposed to Pay a Certain amount Royalty (Called AESC) every month to the franchisor,In Addition the franchisor also ask us to pay Service tax on AESC.

Please help/ guide me further that being a franchisee, am i supposed to pay service tax.
Thanking you
swati gaba
Asked 1 year ago in Service Tax from Delhi, Delhi
No service on Pre school education. That's why you are not charging service tax on school fees.

Franchisee service is rendered by franchiser to you. Thus liable for service tax.

Saket Jain
CA, Greater Mumbai
23 Answers
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Dear Madam,

Franchise services are not included in the negative list and liable for service tax.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar

Abhishek Dugar
CA, Mumbai
1900 Answers
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Hello Swati,

Please clarify what exactly are your looking for, Educational Services or Franchisee or both.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Rohit R Sharma
Rohit R Sharma
CA, Mumbai
1680 Answers
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