Introduction -
In the present scenerio, new inventions are made and technologies get upgraded. Many companies spent huge amount on research & development of new technologies. Since they invest and arrange research, they are concerned aith the protection of right for the use of such inventions. These protections are provided under Patent act 1970, Copyright act, 1957, etc. The owner of such trade marks is entitiled to assign it to any person and allow the ise of such patent for a consideration.
Date from which service is Taxable -
- Service actually provided - From 10-9-2004
- Service to be provided - From 16-6-2005
As per section 65(55a) the word Intellectual property right means " any right to intangible property namely trade marks, designs, patents or any other similar intangible property, under any law for the time being force, but does not include copyright.
Statutory protection to the right -
The intellectual property is recognized as an important asset in any organization. It is treated like any other commodity. The IPR are protected by various laws and their infringements involove liability to pay consideration to the owner.
Meaning of Trade Marks -
Trade marks means " a mark capable of being represented graphically and which is capable of being distinguinshing the goods and services of one person from those of others and may include shape of goods, their packaging and combination of colors.
Design -
It means only the feature of shape, configuration, pattern, ornament or composition of lines or colours applied to any article wheather in 2 dimensional or 3 dimensional or in both forms.
Patent -
It means patent for any invention granted under this Act. As per provisions contained in the Patent Act, the patent is grnated to the new inventions on the basis of application made by the investor.
Only Indian Laws are covered -
The department have clarifed that as the phrase " law for the time being in force " implies such laws as are applicable in india. IPR'S covered under indian law in force at present alone are chargeble to service tax.
Copyright is excluded -
The defination does not include the word " copyright ". For the purpose of this Act, copyright means the excusive right subject to the provisions of this act.
Who is the person liable for payment of service tax ?
If the service provider is located in india, he is the person liable for payment of servoice tax, irrespective of wheather or not he has collected the service tax from the service reciever. However if the service provider is located outside india and service reciever is located in india in such case service reciever will be liable to pay S.T.
Export of service without payment of S.T -
(a) When the service is provided in relation to business or commerce, it is provided to a recipient located outiside india.
(b) Payment for such service is received by the service provider in convertible foreign exchange.
Note - My next article will be on " Cargo Hnadling service "
Thanks & Regards
Sanyam Arora
CAclubindia
