TaxTMI 
TaxTMI 
We have receiving digital royalty for music content from various parties/ telco’s . I would like to know which taxes applicable for digital royalty income? ( Service tax or VAT or Both )
Vat / Service tax on Digital Royalty
08 May 2013 
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Service tax applies to digital music royalties; VAT only applies when content is sold on a physical medium.
Digital receipts for music royalties are taxable as services and treated as service supplies; VAT does not ordinarily apply to royalty receipts for intangible digital content, except where the music is transferred or sold on a tangible physical medium such as a CD or DVD, which may attract VAT characteristics. (AI Summary)
Digital receipts for music royalties are taxable as services and treated as service supplies; VAT does not ordinarily apply to royalty receipts for intangible digital content, except where the music is transferred or sold on a tangible physical medium such as a CD or DVD, which may attract VAT characteristics. (AI Summary)