Around 200 firms, including McDonald’s India, L’Oreal, Colgate Palmolive, Castrol, Saint-Gobain, Whirlpool, Mastek, and Domino’s Pizza, have received notices from state authorities seeking tax under the pre-Goods and Services Tax (GST) regime, according to a report by The Economic Times (ET). The companies argue that they cannot be taxed on the same item as both “goods” and “services” and have subsequently moved various high courts and the Supreme Court.
The tax authorities sent these notices in the past six months. They are seeking approximately Rs 30,000 crore in taxes for the financial years FY11 to FY15. The states have imposed value-added tax (VAT) on the transfer of intellectual property rights (IPRs) to franchisee services.
Read more at : Business Standard
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