20 February 2015
Royalty payments cannot attract a service tax liability, according to a recent decision of the Service Tax (Appellate) Tribunal, Mumbai Bench. Generally, royalty is paid for the use of technology or know-how. Hence, service tax cannot be attracted.
20 February 2015
I revise my view, royalty payments be considered as a consideration for providing a service under the negative list regime and hence liable to service tax.
See the link for advance ruling. http://www.cbec.gov.in/aar/rulings/st-rulings/st-ruling-ms-india.pdf
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