Service tax on royalty on transfer of technical know-how

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We need to know whether we are liable for payment of service tax for transfer of technical know-how on non-exlusive basis. Please note that technical know-how is not registered under any act like Patent Act, Copyright Act in India The transfer of technical know-how is done based on a simple agreement on stamp paper. Entry under service tax for Intellectual property services requires the technical know-how to be registered under any existing Act in India. Since our technical know-how has not been registered under any act, are we liable to pay service tax on royalty received by us? We understand that recent CESTAT decision is in favour of payment of service tax on such royalty incomes although intellectual property is not registered any where. Kindly advise whether we should pay service tax. if no can you quote supporting decisions of CESTAT.

AI Summary

Service Tax Liability on Unregistered Technical Know-How Royalties Questioned; Recent Decision Favors Tax Payment Despite Non-Registration A party inquired about the liability for service tax on royalties from transferring technical know-how on a non-exclusive basis in India, noting that the know-how is not registered under any act like the Patent or Copyright Acts. They referenced a recent CESTAT decision favoring service tax payment on such royalties, despite the lack of registration. A respondent acknowledged the issue's complexity and requested to review the user agreement involved, suggesting that names be anonymized for confidentiality. The discussion revolves around the applicability of service tax on unregistered intellectual property transfers.