Liability of service tax - NGO

[Guest]

sir, my client helpage india is a NGO.HELPAGE RECEIVED ROYALTY INCOME FOR USE OF ITS NAME AND DEPOSIT SERVICE TAX UNDER HEAD INTELLCTUAL PROPERTY. MY QUESTION IS WHETHER HELPAGE IS LIABLE TO PAY SERVICE TAX, NOT BEING A COMMERCIAL CONCERN.

[Madhukar N Hiregange]

Under service tax NGO may also be liable for a number of servcies. Only if the defintion sets out commercial coincern then only they can be excluded. In IPR service the service provider is holder of IPR in this case the NGO. Liable

AI Summary

Service tax liability: receipt of royalties by an NGO for use of its name can attract tax as an intellectual property service. An NGO received royalty income for use of its name and paid service tax under the intellectual property service head. NGOs may be liable for service tax where the statutory definition does not limit liability to commercial concerns. For IPR services the service provider is the holder of the IPR; since the NGO is the IPR holder and received royalties, it qualifies as the taxable service provider and is liable to pay service tax unless the definition expressly excludes noncommercial entities.