Use of Trademark

[Pradeep Kaushik]

Respected All,

 

  

We have a Technical Agreement with our Parent Company (Korea). According to that agreement we can use the TRADEMARK of our Korean Company, here in India. As per agreement,We have to pay some decided Royalty.

 

If we use the Trademark in India, Is there any tax obligation (Direct Tax or Indiarect Tax). Please Advise.

 

 

(As per our previous experience with our China Plant, if we use the korean Trademark, The China Government charged some special tax for that)

Best Regards

PRADEEP KUMAR KAUSHIK

[YAGAY and SUN]

You may be liable to pay service tax under section 66A of the Service Tax Laws under taxable category 'IPR'.

 

[Pradeep Kaushik]

Pradeep Ji, Thanks a lot for the reply.

Please let me know the procedure for valuation of Service tax applicable for the use of Trademark. In which catogory, we have to take service tax registration.

Best Regards.

Pradeep Kaushik

AI Summary

Service tax on trademark licensing may apply to royalty payments for use of foreign parent company's mark in India.
Use of a foreign parent company's trademark in India with royalty payments may attract service tax under section 66A within the taxable category for intellectual property rights (IPR); guidance is sought on valuation of the service and the appropriate service tax registration category.