What is the role of Franchisee? Is he liable for other services?
A person who is utilizing the services provided by Franchisor is called a Franchisee. He is required to pay to the Franchisor, directly or indirectly a fee and is under an obligation not to engage in selling or providing similar goods or services or process, identified with any other person. If the Franchisee happens to carry on certain other notified services like Maintenance and Repair, Business auxiliary service, Internet café, Commercial Training and coaching services, they should get registered under the respective category. For example, Internet service providers are already registered under the category ‘Online Information and Data base Access or Retrieval service’, ‘Leased Circuits service’. Now, they are also liable to pay tax under ‘Internet Café’ service in respect of their own Browsing centres. They also appoint Franchisees to run Browsing centres and in this situation the franchisees have to register, as ‘Internet Café’ and the Principal Internet service providers have to
