Question ID :
44692
dry cleaning services
Whether Dry cleaning services would be covered under section 44AD / 44ADA. Would the same difference if it is under franchise agreement of particular Brand.
Posted by
CA. SURAJ KUMAR CHOUDHARY
on
Jul 16, 2024
Filed Under
Profits & Gains of Business & Profession
Yes. It is covered under section 44AD/44ADA. It does not make any difference if it is under franchise agreement. Franchise is not an agency. In franchise business, the franchisee runs the business at his own risk, which is not the case in agency. Also, generally franchisee receives license fee and not commission. However, franchise agreement need to be scrutinized to verify conditions and should decide accordingly, as the conditions may differ from case to case .
Posted by
CA. chunauti dholakia on
Jul 16, 2024