https://www.taxtmi.com/caselaws?id=218912 A transfer of the right to use a trade mark for royalty was treated as a deemed sale under the Kerala Value Added Tax Act because the franchise agreements granted commercial use of the mark for consideration. A trade mark was held to be goods for VAT purposes, as intangible property capable of transfer and exploitation falls within the statutory concept of goods. Payment of service tax on the royalty did not displace the independent VAT levy arising from the transfer of the right to use goods. The royalty received for franchise use of the trade mark was therefore liable to VAT, and the tax and penalty challenges failed. en-us Wed, 14 Nov 2012 00:00:00 +0530 Fri, 01 Aug 2014 12:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218912 A transfer of the right to use a trade mark for royalty was treated as a deemed sale under the Kerala Value Added Tax Act because the franchise agreements granted commercial use of the mark for consideration. A trade mark was held to be goods for VAT purposes, as intangible property capable of transfer and exploitation falls within the statutory concept of goods. Payment of service tax on the royalty did not displace the independent VAT levy arising from the transfer of the right to use goods. The royalty received for franchise use of the trade mark was therefore liable to VAT, and the tax and penalty challenges failed. Case-Laws VAT and Sales Tax Wed, 14 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218912