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Showcause notices served to F&B cos against trademark usage
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Tuesday, 15 October, 2024, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The Director General of Tax Intelligence has served showcause notices to some food companies against a matter related to trademark usage.
As per reports, more than 10 such F&B companies were served notices for use of trademark by their franchises and outlets, in states other than where they were registered.
The notices were served to these companies seeking an estimated tax of Rs 3,000 crore against the use of trademark, since 2017, the year when GST (Goods and Services Tax) was implemented.
The reason for the notice was said to be provision under GST regime which lays that the franchises and outlets outside the home state of these companies are registered separately and therefore were liable to pay GST on the trademark.
And the franchise holders, outlets were paying fees to these companies but the companies were not paying GST on that.
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