https://www.taxtmi.com/forum/issue?id=3661 Payments to a foreign parent for technical know how and royalties treated as Intellectual Property Right services attract service tax under a reverse charge mechanism; the recipient must register as an IPR service recipient and pay service tax when the charge is booked or the royalty is paid. An R&D cess applies to royalty receipts but is eligible for abatement against the service tax on the royalty. Required documentation includes the agreement, and R&D cess is remitted by cheque with a challan through standard banking channels. en-us Tue, 20 Dec 2011 11:47:05 +0530 Thu, 23 Jan 2025 15:58:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3661 Payments to a foreign parent for technical know how and royalties treated as Intellectual Property Right services attract service tax under a reverse charge mechanism; the recipient must register as an IPR service recipient and pay service tax when the charge is booked or the royalty is paid. An R&D cess applies to royalty receipts but is eligible for abatement against the service tax on the royalty. Required documentation includes the agreement, and R&D cess is remitted by cheque with a challan through standard banking channels. Discussion-Forum Service Tax Tue, 20 Dec 2011 11:47:05 +0530 https://www.taxtmi.com/forum/issue?id=3661