Service tax on royality

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Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2011 Royality collection on Technology transferred is taxable service or not.

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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11 October 2011 Technology may be intellectual property . If Intellectual property is transferred temporarily and not permanently, royalty received will be chargeable to service tax under 'intellectual property service' service.

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2011 If IP transferred permanently what is taxability.

IF royality for know-how transferred.

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CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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12 October 2011 If transferred permanently it is specifically excluded under the definition of 'intellectual property service' nder Section 65(105) of Finance Act, 1994. Therefore, not taxable. How royalty can be transferred? If assuming know-How is transferred then also same rule applies.

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2011 To,
CA Nikhil Jhanwar,

Thanks for your expert advice.

KJ Chauhan
Ranchi