Transaction of technical knowhow

This query is : Resolved

Veena (Querist)
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07 February 2013 We are a Indian private limited company and want to do technology transfer to an Indian Pvt Ltd company

1. How transaction takes place? what are taxes applicable
2. How much depreciation applicable.

Hemant Kumar

Hemant Kumar (Expert)
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07 February 2013 Clarify... You want to take the technology transfer or give the technology transfer????

Veena

Veena (Querist)
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07 February 2013 We want to give technology transfer

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CA Kishore Tallam

CA Kishore Tallam (Expert)
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08 February 2013 If it is a sale of technology which is ur capital asset, then the sale consideration shall be reduced from block value and if the block is negative, the it shall be charged as STCG.
If it is a mere giving a right to use ur technology, then both service tax and VAT will be applicable.