service tax on sub lease of minor minerals

[jagadesh kumar bhojanapalli Kumar]

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

AI Summary

Intellectual property service: royalty for mineral sub lease treated as licensing fee and unlikely to attract service tax.
Royalty payments made to a mineral development corporation for the purpose of mining are treated as licensing fees for extraction rights and, in the advisor's view, do not attract service tax as an intellectual property service; if service tax is found leviable, the recipient corporation would bear the liability.