Service Tax on Copy right

[Sanjeev Sharma]

As per Section 65(55a) of Finance Act, 1994 “Intellectual Property Right” means any right to intangible property, namely, trade marks, designs, patents or any other similar intangible property, under any law for the time being in force, but does not include copyright'

Is there would be any impact on taxability of income from copyright by introduction of negative list.

AI Summary

Copyright Income Taxation Clarified: Exemptions for Literary and Artistic Works, Tax Applies to Sound Recordings per Finance Act 1994 A query was raised regarding the impact of the negative list on the taxability of income from copyright under the Finance Act, 1994. It was clarified that while copyright is not included in the negative list, it is exempt from service tax according to notification 12/2012-ST dated 17 March 2012. Further clarification indicated that copyrights on original literary, dramatic, musical, artistic works, and cinematographic film recordings are not subject to service tax, whereas copyrights on sound recordings remain taxable.