Royalty

This query is : Resolved

hetal sangoi (Querist)
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08 March 2012 assessee doing the business of own publishing with other partners in same firm.He wrote a book. Firm wants to pay royalty.Can firm pays & entile for deduction under pgbp? and same simulatanously assessee shows this income in pgbp & clain deduction of rs 3 l?

is it legally permissible under income taX?

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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10 March 2012 Royalty is particularly related to a IPR and any one can have and utilize this, merely a person who has IPR and meanwhile partner in a firm does not restrict to firm the use of this IPR on arms length price, stopping to firm to use this IPR is against the natural justice, so a partner can allow to firm the publish the books and in response to this firms may pay this partner royalty on arms length price basis.In my opinion this will be allowable expenditure in PGBP and Royalty income under the hand of beneficiary of this IPR.

Regards
CA Pankaj Jaiswal
pankaj@anpllp.com