Legal Question in Business Law in India

Service tax on Royalty

We are paying Royalty to our JV Partner in USA who holds 50% shareholding. Royalty is paid @ 2.50% of our domestic sales.

Will this be subject ot Service tax.


Asked on 6/24/08, 8:26 am

4 Answers from Attorneys
Manish Dhingra Legal

Re: Service tax on Royalty

I presume royalty is on the intangible property like IP. I dont think you are liable for service tax.

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Answered on 6/24/08, 10:11 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Service tax on Royalty

Consult a tax advocate.

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Answered on 6/24/08, 11:58 pm
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Service tax on Royalty

I would advise you to contact a local tax advocate with all details.

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Answered on 6/25/08, 12:05 am
G. M. Gupta gmguptaandassociates

Re: Service tax on Royalty

if not service tax then it will certainly come under any other tax

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Answered on 6/26/08, 5:48 am


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