Service tax on royalty

[MITSUI PRIME ADVANCED]

Dear Sir,

PL. advice to us we have made one payment form India to Japan related to Royalty Pl. advice to us in such cases service tax attract.

and in service tax law which category is covered ?

Royalty 1 percent paid on fourth qty  Sales .

Pl. advice thanks for your co-operation in advance.

Thanks & Regards

Arjun Sachdeva

AI Summary

Service Tax Applies to Royalty Payments from India to Japan for Intellectual Property Services, Check Place of Provisions of Services Rules. A user inquired about the applicability of service tax on royalty payments made from India to Japan. Two respondents clarified that service tax does apply to such payments under the category of Intellectual Property services. The first response advised checking the Place of Provisions of Services Rules and mentioned paying the service tax in cash while availing CENVAT credit on input services. The second response confirmed the applicability of service tax on a reverse charge basis and noted that a deduction on R&D cess is available when making the payment.