Royalty and Rent

[Guest]

Hi I have a question,

A factory is leased out on rent and royalty is charged on the no of units produced.

My question is

1 Royalty charged is not covered under IPR. Hence is the amount received as royalty on goods manufactured come under service tax.ambit?

2 Is the 10 lakh exemption amount on service tax a combination of rent and royalty.

Thanks

AI Summary

Royalty for units produced in a leased factory subject to service tax; 10 lakh exemption not combined with rent. A user inquired about the applicability of service tax on royalty charged for units produced in a leased factory. Specifically, they asked if the royalty, not covered under intellectual property rights, falls under the service tax ambit and whether the 10 lakh exemption on service tax applies to both rent and royalty combined. The response clarified that the royalty is subject to service tax, but the 10 lakh exemption does not combine rent and royalty.