I am a lessee of a shop taken on lease from a partnership firm which owns the shop..Earler i was running a boutique but was not earning sufficient..I have now decided to give it to my relative to run the shop whereby he will give me a fixed amount per month..My question is whether i should give the shop on leave and license or should i do a franchise agreement or should i receive the sum amount as salary..please answer my question keeping in mind that i am a lessee.Also from income tax and service tax point of view which agreement would be suitable..please advice
1 Answer from Attorneys
You can do any of the deeds mentioned above,except salary,as employer and employee cannot be same person.You can lease out the boutique,but with the prior permission of your lessor.Ultimately,you are the person who shall be liable to pay taxes to all the concerned authorities
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