vat on permentaly transfer of trade mark

[Guest]

We have transfered some trade mark on permanentely basis. Please adivse whether VAT appliacble on this transaction or not.

[rishi mohan]

Under Service Tax, tax is levied on :-

1.temporary transfer or permission to use  Patents, Trade-marks, Designs,

Under VAT, tax is levied on :

1.permanent transfer of right to use Patents, Trademarks, Designs.

AI Summary

VAT on permanent transfer of trademark rights applies while service tax covers temporary permissions to use. VAT applies to the permanent transfer of the right to use patents, trademarks and designs, while temporary transfers or permissions to use those intellectual property rights are subject to service tax rather than VAT.