Dear Sir
We are paying royalty to foreign company for using their formula for manufacturing the product in india. Whether we are liable to pay service tax.
If yes, then from which particular date the service tax is applicable. Also provide us the year wise rate of service tax.
Regards
Sumedh Ayare
Royalty Payments to Foreign Companies for Using Their Formula in India Subject to Service Tax Under IPR Services A query was raised regarding the applicability of service tax on royalty payments to a foreign company for using their formula in manufacturing products in India. The respondent confirmed that such payments are subject to service tax under Intellectual Property Rights (IPR) Services. Further details can be found by reviewing the relevant IPR Services guidelines. (AI Summary)