TaxTMI 
TaxTMI 
Dear Sir,
Good Noon,
Pl. advice to us if we will going to pay royalty from India to Japan as a "Running Royalty" in such service tax position.
service tax applicable on royalty or not.
pl. advice.
Thanks & Regards
Arjun Sachdeva
Running Royalty
03 Apr 2014 
1 Reply 
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Service tax on royalty: recipient in India liable under reverse charge when provider is in a non taxable territory.
Temporary transfer or permitting use or enjoyment of intellectual property rights is a declared service liable to service tax; royalties paid for enjoyment of IP are taxable. If the provider is in a non taxable territory, the Indian recipient is liable to pay service tax under the reverse charge mechanism for running royalty payments. (AI Summary)
Temporary transfer or permitting use or enjoyment of intellectual property rights is a declared service liable to service tax; royalties paid for enjoyment of IP are taxable. If the provider is in a non taxable territory, the Indian recipient is liable to pay service tax under the reverse charge mechanism for running royalty payments. (AI Summary)