The Budget 2020 had to play a balancing act in addressing the
global economic slowdown while restoring hope of a previously
promised 5 trillion economy.
The Budget proposals will affect corporates across various
sectors, including real estate, retail and infrastructure. In the
retail space, legislators must keep pace with evolving models and
technologies. 'Franchise' is a popular retail model.
This article discusses proposals that may help franchises keep a
tab on changing tax costs.
Casting the TDS Net on E-Commerce
An Indian franchisee fights tooth and nail for a right to retail
the franchisor's brand on an e-commerce channel. Franchisors,
conscious of this sale channel's popularity, guard it craftily.
They would resist sharing this entire pie, perhaps only part with
pieces - whether by compensating franchisees for revenues generated
from this channel in the franchisee territory or permitting
franchisees to earn revenues solely from customer