service tax on royalty

[pratik joshi]

Dear Friends

Can you please help me out. I want to know is there any service tax payable on Royalty on textbooks published by an 'author'. Please mention landmark case if any. 

[YAGAY andSUN]

Dear Pratik,

Please check the point no 15 of Mega Exemption Notification No 25/2012-ST/20.06.2012 W.E.F. 01-07-2012, which enumerates that :-

15. Services provided by way of temporary transfer or permitting the use or enjoyment of a copyright,-

     (a) Covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical or artistic works; or

     (b) of cinematograph films for exhibition in a cinema hall or cinema theater;

Hence, no service tax would be applicable on this matter.

Regards

Team YAGAY & SUN

Indirect Tax Consultants

AI Summary

Copyright royalty exemption protects textbook royalties by excluding copyright licences from service tax liability under exemption rules. Royalty payments to an author for textbooks fall within the exemption for services by way of temporary transfer or permitting the use or enjoyment of a copyright in original literary works and are therefore excluded from service tax.