Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: articles on VAT and GST in India :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ACCOUNTING STANDARD :: TDS :: empanelment :: VAT RATES
 
 
« VAT (Value Added Tax) »
 Date for filing quarterly VAT returns extended
 Framing of Central Assessments - Dated 2-2-2017 - VAT - Delhi
 CENVAT Credit (Amendment) Rules, 2017
 VAT to Give Way to Consumption Tax
 Import stage VAT under new VAT law
  VAT returns: Relief for traders as UT allows old form
  Grant of Registration under DVAT and CST
 Taxpayers Face Big Financing Costs From VAT Bill 2017
 VAT returns: Relief for traders as UT allows old form
 Gov’t agrees to retain VAT exemptions of seniors, PWDs Read more: https://business.inquirer.net/223121/govt-agrees-retain-vat-exemptions-seniors-pwds#ixzz4W5NV2I48 Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
 Understanding VAT refunds

No VAT on brand franchisee fee without transfer of effective control over brand
November, 19th 2015

No VAT on brand franchisee fee without transfer of effective control over brand

State of Karnataka, Bangalore Vs. United Breweries Ltd. [2015 (11) TMI 754 - KARNATAKA HIGH COURT]

United Breweries Limited (“the Respondent”) being owner of Kingfisher Brand entered into contracts with certain Contract Bottling Units (“CBUs”) for manufacturing of beer.

In terms of the contract:

  • The Respondent transferred know-how for manufacturing beer to CBUs which was on non-assignable, non-transferable and non-exclusive basis;

  • The CBUs manufactured beer as per the specifications given by the Respondent using his trade marks, names and logos and the entire production was made available to the Respondent;

  • The right to market, sell, distribute and package the beer remained under the supervision and control of the Respondent;

  • The CBUs neither had any right over the product, nor did they have any right to sell or exploit the beer so produced, nor fix any price of the product.

The Respondent received payments from CBUs as 'brand franchise fees' and paid Service tax on the same. However, the Assessing Officer levied Sales tax on such payments by treating these as royalty.

The Hon’ble High Court of Karnataka held that it is settled law that Sales tax can’t be attracted until effective control is transferred. Since CBUs did not get effective control over the brand name as such, it could not be considered as sale of intangible goods. It was further held that since the Respondent had already paid Service tax on the amount received as brand franchise fees, double taxation on same goods is not permissible.

 
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions