TaxTMI 
TaxTMI 
service tax on sub lease of minor minerals
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....ervice tax on sub lease of minor minerals<br> Query (Issue) Started By: - jagadesh kumar bhojanapalli Kumar Dated:- 26-9-2015 Last Reply Date:- 6-10-2015 Service Tax<br>Got 3 Replies<br>Service Tax<br>We are having X Joint Venture Company ( 100% EOU) in process of Granite Blocks & Granite slabs (sub lease given by the Corporation under special project and also state govt corporation is having 11% ....
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....share). The X company is paying Royalty & other charges is as per Agreement. We would like to know the service tax is applicable or not on sub lease of minor mineral lease after 1.7.2012 thanks jagadesh kumar Reply By Rajagopalan Ranganathan: The Reply: Sir, Normally service tax is payable on royalty charges under 'Intellectual Property Service'. In your query I would like to know ....
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....to whom you are paying royalty? Reply By jagadesh kumar bhojanapalli Kumar: The Reply: We are paying royalty charges to Mineral Development Corporation Reply By Rajagopalan Ranganathan: The Reply: Sir, According to Section 66 E (c) of Finance Act, 1994 temporary transfer or permitting the use or enjoyment of any intellectual property right is declared service. You are paying royalty to Minera....
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....l Development Corporation for the purpose mining of minerals. In my opinion such payment of royalty will not attract service tax since what you pay as royalty is in the nature of licensing fee. Hence in my opinion you need not pay service tax on such royalty. Moreover since royalty amount is received by Mineral Development Corporation only they have to pay the service tax if leviable since such co....
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....rporation cannot be equated to Government, local authority etc.<br> Discussion Forum - Knowledge Sharing ....