VAT on intengibles

[sachin kuchekar]

Dear All,

 

I hereby wants to make general discussion on VAT applicability on intangible e.g. pattern,copyright,trademark or in other words we can say 'right to use.'

[YAGAY andSUN]

These intangibles are specifically mentioned in the VAT Schedules and are taxable @ 5% on sales. Term, Right to use can't be appropriate for the same.

[sachin kuchekar]

hi friend....

I am not talking about rate applicability........

My query is on which type of transactions can be considered as right to use majorly it is on telecom , software industry..........

and second thing is intangibles for e.g if you have downloaded ring tone,games,soft,e-shopping,sale of website etc...........

[Jasbir Uppal]

That in UPVAT act 2008. All intangible goods like copyright, patent, rep. license etc; are mentioned in Rate of tax Schedule - II  Part-A  S.No. 3 and taxable @ 4% plus additional tax @ 1% total tax  payable @ 5%. 

 

J.S.Uppal

Tax Consultant

Tel. No :0562-4045013

Mobile No: 9319206519

E-mail : [email protected]

[YAGAY andSUN]

Downloading of contents like music, games, ring Tones etc. would come under the purview of Service Tax but not under the purview of VAT/CST.

E shopping would come under the purview of VAT/CST.

AI Summary

Taxation of intangibles: downloadable digital content viewed as service tax while other intangible transfers attract VAT/CST. Statutory VAT schedules expressly list intangible goods such as copyright, patent rights and representative licences as taxable; the term Right to use is not an appropriate substitute for statutory classification. Transactional treatment varies: conventional commercial transfers of listed intangibles attract VAT/CST under the applicable schedule, downloadable digital content is treated as service tax in the discussion, while e shopping and sale of websites are identified as falling within VAT/CST.