We are having X Joint Venture Company ( 100% EOU) in process of Granite Blocks & Granite slabs (sub lease given by the Corporation under special project and also state govt corporation is having 11% share). The X company is paying Royalty & other charges is as per Agreement.
We would like to know the service tax is applicable or not on sub lease of minor mineral lease after 1.7.2012
thanks
jagadesh kumar
Service Tax Not Applicable on Mining Royalty for Granite Processing Joint Venture Post-July 2012 A query was raised regarding the applicability of service tax on the sublease of minor mineral leases after July 1, 2012, by a joint venture company involved in granite processing. The company pays royalties to a Mineral Development Corporation. The response clarified that service tax is typically applied to royalty charges under 'Intellectual Property Service.' However, since the royalty is a licensing fee for mining rights, it does not attract service tax. The Mineral Development Corporation, which receives the royalty, would be responsible for any applicable service tax, not the company. (AI Summary)
TaxTMI 
TaxTMI 
