From R M KANDOI
In one Business Transfer Agreement, where it is written that follwing is transferred----
Assets means--'All intellectual property'
According to me it is permanent & not temporary,
As per Excise Auditor, as VAT is not paid on transfer of Intellectual Property & hence Service Tax is payable.on transfer of 'All Intellectual Property'
Request for your clarification on this point & if any case law then,it will be more helpful,if possible, pl. send
Permanent Intellectual Property Transfers May Avoid Service Tax Under Section 66E, But VAT Non-Payment Triggers Service Tax Liability. In a discussion forum, an individual inquired about the tax implications of transferring intellectual property in a Business Transfer Agreement. They noted that the agreement indicated a permanent transfer of intellectual property. One respondent referenced Section 66E of the Finance Act, 1994, suggesting that permanent transfers do not incur service tax. Another respondent explained that if the transfer involves a one-time fee, it may be considered a sale subject to VAT. However, since VAT was not paid, the transaction is treated as a royalty, making it liable for service tax. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
