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Service Tax on Royalty paid to Foreign Company

This query is : Resolved 

10 March 2009 Dear Sir,

My Query is regarding service tax applicable in India if A&Co. paid Royalty to Foreigh Company i.e. B&Co. of USA and JAPAN.

Please reply.

Regards

11 March 2009 Service Tax is payable, by indian company, under the head "intellectual property service" under Section 66A of the Finance Act. The payment should be done in cash. If however, such services are used as input service for manufacture of excisable goods or providing taxable output service, the person paying the tax can take cenvat credit.

12 March 2009 Thanks.

Sir,
My other query is that National Calamity Contingency Duty (N.C.C.D.) can be paid / adjust through Cenvat Credit or paid in cash through PLA.

Please reply

Regards




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