Procedure to shown R&D Cess and S.Tax on Royalty

[RAM SHARMA]

Dear Experts,

What is the procedure of service tax on royalty and R&D Cess to show in service tax return. As per service tax rule we have to pay 5% R&D cess and balace 7% in service tax on royalty. Secondly can we take cenvat credit of 7% service tax on royalty. Pl. advice.

Thanks

AI Summary

Clarification on Service Tax: R&D Cess Exempt from Service Tax; Cenvat Credit Available per Eligibility Norms, Notification 14/2012-ST. A query was raised regarding the procedure for showing service tax on royalty and R&D Cess in service tax returns. The inquirer mentioned a requirement to pay 5% R&D Cess and 7% service tax on royalty, and asked about claiming Cenvat credit on the service tax. The response clarified that R&D Cess is not payable under service tax rules but under the Research and Development Cess Act, 1986. The amount paid towards R&D Cess can be exempted from service tax as per Notification 14/2012-ST. Cenvat credit is available based on eligibility norms.