Should i pay service tax on roylity

This query is : Resolved

KAPIL (Querist)
Follow

15 July 2019 Can any one tell me that service tax is applicable on royalty income or not.if Not, Please give me latest judgement.

Kapil Bhatia

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 July 2019 Yes, service tax is applicable on royalty income.

The CBEC circular on levy of service tax on services provided by the government to businesses says that one-time payments for natural resources are exempt, but not any periodic payments. Oil companies pay royalty on a monthly basis.

KAPIL

KAPIL (Querist)
Follow

15 July 2019 Sir
My client is running a partnership firm and getting royalty from some one for using brand name. Is it covered under service tax or not.

Upgrade to CAclubindia Pro. Subscribe Now!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 July 2019 Yes it's covered under service tax.