Tax on Payment of Royalty

[Pradeep Kaushik]

Respected All,

I have some queries stated as under:

1. We are paying Royalty , on our Gross Sales to our parent Company in South Korea, Is it really covered by Service Tax Act. Is it fall under Intellectual Property Services. . Please Explain with Section and circulars, if any.
2. Can we take the Cenvat credit for the Service Tax, we deposited on Royalty payments. Please provide the notification/ circular for justification.
3. Is R&D Cess also applicable to us. If Yes, Do we have to take any registration for deposit of  R&D Cess. Where we have to deposit this Cess. Please describe the procedure in detail.
4. Is Cenvat available for R & D Cess also.

Please reply.

Best Regards.

Pradeep kaushik

AI Summary

Service Tax on Royalty Payments: Check Intellectual Property Services, R&D Cess Deductibility, and Notification No. 46/2011-ST. A user inquired about the applicability of service tax on royalty payments to a parent company in South Korea, questioning whether it falls under Intellectual Property Services and if Cenvat credit can be claimed on these payments. Additionally, they asked about the applicability and registration requirements for R&D Cess, and whether Cenvat is available for R&D Cess. The response advised checking Intellectual Property Rights services, noted that R&D Cess is deductible from total service tax payments, and referenced Notification No. 46/2011-ST for further details on R&D Cess.