06 January 2018
I am having a brand applied for trademark but the status is formalities checking failed and i have withdrawn my brand from registration and the status has been changed to withdrawn. Now if i file an affidavit to the above brand means will it attracts 5% gst or Exempted ?
06 January 2018
Under the Goods and Services tax (GST), five per cent tax will be charged on packaged branded pulses said that a mark or name on which actionable claim is available shall also be deemed to be a registered brand name.
However, GST will not apply if the concerned person voluntarily foregoes any actionable claim or enforceable right on such brand name after filing an affidavit to the effect with the jurisdictional Commissioner of Central Tax or State Tax, or the jurisdictional officer of Union Territory Tax, as the case may be.
The person will also be expected to print in indelible ink, both in English and local language on each such unit container, that in respect of brand name printed on the unit containers he has voluntarily foregone his actionable claim or enforceable right
27 July 2024
Under the GST framework in India, the taxation of actionable claims, including trademarks, is governed by specific provisions. Here’s a breakdown of how this works:
### **Understanding Actionable Claims and GST**
1. **Actionable Claims Definition**: - **Actionable Claims**: Under Indian law, actionable claims refer to claims to any debt or beneficial interest in movable property, which is not in possession of the claimant. For GST purposes, actionable claims are generally exempt from GST.
2. **Trademark and GST**: - **Trademark Registration**: The act of applying for or holding a trademark does not itself attract GST. GST is typically applied to the sale or transfer of trademarks as a supply of goods or services. - **Transfer of Trademark**: If you are transferring or licensing a trademark, GST may be applicable. The rate of GST on the transfer of intellectual property rights, including trademarks, is generally 12%.
3. **Affidavit on Foregoing Actionable Claim**: - **Affidavit**: Filing an affidavit to forgo an actionable claim on a trademark does not directly affect the applicability of GST. The act of filing an affidavit to forego or relinquish a claim does not constitute a sale or transfer that would trigger GST liability.
### **Specific Exemption Provisions**
- **Exemption Notifications**: Exemptions from GST are typically provided through specific notifications issued by the GST authorities. For example, certain actionable claims are exempt under **Notification No. 12/2017 – Central Tax (Rate)**. However, this usually pertains to actionable claims like lottery, betting, and gambling rather than intellectual property.
### **Key Points to Note**
- **Trademark and GST**: The transfer of trademarks or licensing thereof is typically subject to GST at 12%, and this would be relevant if you are involved in such transactions. - **Affidavit**: Simply filing an affidavit to forgo an actionable claim does not exempt you from GST obligations related to the trademark's transfer or licensing.
### **Conclusion**
- **GST Exemption**: The act of foreclosing or filing an affidavit on an actionable claim does not exempt you from GST on related transactions such as the sale or licensing of the trademark. - **Consult a Professional**: For precise advice tailored to your specific situation, especially regarding the exemptions and GST rates applicable to your case, consulting a tax professional or legal advisor is recommended.
This approach ensures compliance with GST laws and helps you avoid potential issues with the tax authorities.
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