https://www.taxtmi.com/caselaws?id=267945 A taxable transfer of the right to use intangible goods arises only when the transferee obtains effective commercial control and unrestricted use of the brand or other intangible property. On the beer franchise arrangement, the contract bottling units were captive manufacturers acting under the assessee's specifications and control, with no independent right to exploit the brand; that receipt was therefore not liable to sales tax. On the packaged drinking water arrangement, the licensee dealers were allowed to use and commercially exploit the Kingfisher mark on royalty, so effective control passed and the royalty was taxable under the Karnataka Sales Tax Act, 1957. en-us Thu, 01 Oct 2015 00:00:00 +0530 Wed, 18 Nov 2015 10:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=267945 A taxable transfer of the right to use intangible goods arises only when the transferee obtains effective commercial control and unrestricted use of the brand or other intangible property. On the beer franchise arrangement, the contract bottling units were captive manufacturers acting under the assessee's specifications and control, with no independent right to exploit the brand; that receipt was therefore not liable to sales tax. On the packaged drinking water arrangement, the licensee dealers were allowed to use and commercially exploit the Kingfisher mark on royalty, so effective control passed and the royalty was taxable under the Karnataka Sales Tax Act, 1957. Case-Laws VAT and Sales Tax Thu, 01 Oct 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=267945