Franchise

The Franchise and Intellectual Property Services fall under tariff heading 9823.0000 and 9838.0000 respectively of Second Schedule to the 2011-Act. It is the fourth-largest segment in terms of revenue generation. In the fiscal year 2023-24, it contributed Rs. 14.47 billion compared to Rs.11.66 billion in FY 2022-23, which represents 24.10% Year-on-Year growth. In accordance with SRB’s notification No. SRB-3-4/8/2013 dated 1st July, 2013, reduced tax rate of 10% is applicable on the Franchise and Intellectual Property services whereas the input tax credit shall not be admissible. However, such service providers may opt standard tax rate of 15% through an election/option form in accordance with the 2011-Act, which authorizes them to claim/adjust input tax credit.