RENT Vs ROYALTY

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Deekshit (Querist)
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23 January 2010 Is there any difference between Royalty and Rent??

If there is any please let me know..

THANKS A LOT in advance

CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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23 January 2010 Rent is an amount which we receive or accrue as rent, for the use of depreciable property used in a trade or business.

Royalty which receive from copyrights on literary, musical, or artistic works and similar property, from a patent on an invention, royalties from oil, gas, or other mineral properties.

Regards

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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23 January 2010 The major difference between rent and royalty is as under :

1. Rent is a compensation paid for an asset taken into possession for a specified period "REGARDLESS" of the use of the asset.

2. Royalty is paid on the basis of "USE" of the intellectutl property and/or depreciable assets (like mines).

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Deekshit

Deekshit (Querist)
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29 January 2010 hey thanks

Deekshit

Deekshit (Querist)
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29 January 2010 hey thanks a lot.. it was really helpful..