31 March 2018
Sir I am running a private limited company main operation being know-how licensing sometimes with ipr sometimes without ipr. When ever we solve a major production problem then we ask for royalty from sales and dont charge our services on one time basis. In one such case with our technical support another private company solved their major production problem and reached market. they will now pay royalty to us on monthly sales. Q1. What is the gst rate for such royalty payments from a private party to another private party both with gstn registrations. Q2. Since only the production setup knows how much sales happens every month, can they remit royalties to my account and pay GST on it ? Q3. How to implement this in GST rule book .. in other words i cant raise an invoice .. they cant raise a invoice either .. hence how to implement this Regards
02 April 2018
1.Rate is 18%. 2. Service is under forward charge and hence you need to charges GST and remit to the Government. 3.You need to raise the invoice for royalties accrued.
CAclubindia
