TaxTMI 
TaxTMI 
Technical know How and Royalty payment
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....echnical know How and Royalty payment<br> Query (Issue) Started By: - Pradeep Kaushik Dated:- 20-12-2011 Last Reply Date:- 22-12-2011 Service Tax<br>Got 6 Replies<br>Service Tax<br>Respected Sir, We are 100% subsidary company of a Korean Co. There is some queries: 1. Payment for Know How - Technicians Visited from South Korea to India for technical support ( For this purpose what documentation w....
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....e require from Korea office and what are our Direct/Indirect Tax liabilities in this regard) 2. Payment for Initial Royalty-( For this purpose what documentation we require from South Korea and what are our Direct/ Indirect Tax liabilities in this regard). Please suggest us your best advice in detail. Best Regards. Pradeep kaushik Reply By Rahul Sonawane: The Reply: Dear Pradeep, In sr No.cl....
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....arify that, whether any payment or reimbersement is made to Korean co. for this service. , if yes then you need to pay service on said amount @ 10.3% under reverse charge mechanism. 2. First of all you need to get registered your self under IPR Service as a service receipent. Where in case of Royalty you need to pay service tax @ 10.3% after the provision in made in the Books of Accounts or Royal....
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....ty payment is made. You also need to pay R & D cess @5% on Royalty Amount and you will get the abatement of this R & D cess amount while paying service tax. Documents required are copy of Agreement. Reply By Pradeep Kaushik: The Reply: Respected Mr. Sonawane, Thanks for the Advice. We are paying the Royalty on our Sales Turnover. So how the Service Tax and R&D Cess is applicable. Please Cla....
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....rify. Further, please let me know the procedure of R & D Cess payment (It registration, Payments, return and any other legal compliances) I shall be very greatful to you. Best Regards. Pradeep Kaushik Reply By Rahul Sonawane: The Reply: Dear Pradeep, Service tax is applicable on Royalty payment under Reverse charge mechanism under Intellectual property Right Services. Reply By Pradeep Kaus....
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....hik: The Reply: Respected Mr. Sonawane, Thanks for your early reply. Please let me know the procedure for R&D Cess also. (It's registration, Payments, return and any other legal compliances) Best Regards. Pradeep Kaushik Reply By Rahul Sonawane: The Reply: For R&D cess payment you can draw a cheque on A/c R&D Cess & need to fill a challan. As per my knowledge there is not any other legal c....
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....ompliances, but make sure. Reply By Rahul Sonawane: The Reply: As per my knowledge you can make the payment in UNION bank.<br> Discussion Forum - Knowledge Sharing ....