royalty received from books

[satbir singhwahi]

Company is receiving royalty on books , whether taxable under service tax ?

AI Summary

Debate Over Service Tax on Book Royalties: Are They Exempt or Taxable Under Copyright Transfer Notification? A company receiving royalties from books is questioning whether these royalties are subject to service tax. One respondent clarified that, according to a specific notification, services involving the temporary transfer or use of copyright for original literary works are exempt from service tax. Another respondent argued that since the royalties are not for original literary creations, they are taxable. The discussion suggests that the company has commercially exploited copyrights obtained from original authors, which influences the taxability of the royalties.