Service tax on royalty on software

1) Whether service tax is required to be paid on royalty received on software by its developer ? The royalty is per software and charged on quarterly basis. 

2) If a party is having the software contract and charging/paying the service tax on it. If it allots the sub-contract to another party, whether the "another party" is liable to collect and pay service tax ? 

 

Pl. advice

 

Replies (2)

Service tax will be applicable on royalty.

Originally posted by : LAXMIKANT JAIPURKAR

1) Whether service tax is required to be paid on royalty received on software by its developer ? The royalty is per software and charged on quarterly basis. 

2) If a party is having the software contract and charging/paying the service tax on it. If it allots the sub-contract to another party, whether the "another party" is liable to collect and pay service tax ? 

 

Pl. advice

 


Service tax is applicable on royalty services .
 

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