Service Tax Payable on Fees retained on Courses Run through affiliated centers

Tata Consultancy Services Limited Vs C.S.T. (CESTAT Delhi)

The first demand has been raised under the category of Franchisee The appellant has developed a course relating to Diploma in Advance Software Technology. Such course has been run through affiliated centers and out of the fee charged from the students, 25 per cent of the fees has been retained by the appellant. Revenue^‘s case is that Service Tax is liable to be paid on the said amount retained, under the category of Franchise Services.

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