Marks
This query is : Resolved
15 December 2013
what is royality
15 December 2013
read this: http://www.majmudarindia.com/pdf/Taxation%20of%20royalty%20payments%20in%20India.pdf
15 December 2013
As you have posted your query in the accounts section in CCI, so I am taking the presumption that you are more likely to know in accounts point of view.
Meaning:-
'Royalty' is a payment to an owner for the use of property, especially patents, copyrighted works, franchises or natural resources. A royalty payment is made to the legal owner of a property, patent, copyrighted work or franchise by those who wish to make use of it for the purposes of generating revenue or other such desirable activities. In most cases, royalties are designed to compensate the owner for the asset's use, and are legally binding.
Accounting Treatment :-
As per accounting standard-9, it should be recognized as revenue in books of a/c as per the payment due in agreement, and there is certainty of receiving such payment.
Taxation Treatment:-
You may refer Nikhil's link..
Thanks
Meaning:-
'Royalty' is a payment to an owner for the use of property, especially patents, copyrighted works, franchises or natural resources. A royalty payment is made to the legal owner of a property, patent, copyrighted work or franchise by those who wish to make use of it for the purposes of generating revenue or other such desirable activities. In most cases, royalties are designed to compensate the owner for the asset's use, and are legally binding.
Accounting Treatment :-
As per accounting standard-9, it should be recognized as revenue in books of a/c as per the payment due in agreement, and there is certainty of receiving such payment.
Taxation Treatment:-
You may refer Nikhil's link..
Thanks
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
