I wanted to become a franchisee of DTDC Courier & Cargo Ltd. in my town. But the executive manager told me to get the service tax number.
I spoke to my uncle, who is a CA in Mumbai, and he said that ST is only for entities with turn over of over 10 lakhs.
I spoke to the DTDC executive manager about it. But he insisted it's necessary. So I applied for Service Tax number on https://www.aces.gov.in/, received it, and sent the certificate to him after getting it attested at the regional office.
Now my uncle told me that central tax stuff are too risky and I shouldn't have applied, since the income isn't over 10 lakhs. He told me to cancel the Service Tax Number as well. But I have already submitted the application form to DTDC along with 2 DD's of Rs. 5,000 (as a refundable deposit on a contract of 3 years) & Rs. 3,000 (which they give me stationary products for).
- Since the income is far less than 10 lakhs, is it possible to cancel the STN without affecting the contract?
- If yes, what's the procedure to deal with DTDC on this issue?
- Can a franchisor insist the franchisees to have a Service Tax Number?
