Service tax on royalty

[Prakash Gupta]

Whether service tax applicable under reverse charge mechanism on Royalty paid by resident company to non resident.

Thanks & Regards,

Pankaj Singh

AI Summary

Service Tax Applies to Royalties Under Reverse Charge; Verify R&D Cess Separately for Compliance Clarity. A query was raised about the applicability of service tax under the reverse charge mechanism on royalties paid by a resident company to a non-resident. Multiple respondents agreed that service tax is applicable. One respondent suggested verifying the applicability of the Research and Development Cess, while another clarified that R&D Cess is unrelated to the service tax on royalty charges. The consensus was that service tax does apply, but the R&D Cess should be considered separately.