tds & service tax on royalty

This query is : Resolved 

06 August 2010 Company "A" is brand owner
company "B" IS BRAND USER
COMPANY "B" gives royalty @ rs. 20/- per bottle to company "A"
So, tds liability is applicble for company "B" OR NOT
PLS. BRIEFLY DESCRIBE

06 August 2010 Pure brand name licensing arrangements would clearly attract the charge of service tax under the heading of Intellectual Property Services.



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