TaxTMI 
TaxTMI 
Permanent Transfer of Intellectual Property
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....ermanent Transfer of Intellectual Property<br> Query (Issue) Started By: - ramniranjan kandoi Dated:- 27-11-2016 Last Reply Date:- 28-11-2016 Service Tax<br>Got 2 Replies<br>Service Tax<br>From R M KANDOI In one Business Transfer Agreement, where it is written that follwing is transferred---- Assets means--"All intellectual property" According to me it is permanent & not temporary, As p....
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....er Excise Auditor, as VAT is not paid on transfer of Intellectual Property & hence Service Tax is payable.on transfer of "All Intellectual Property" Request for your clarification on this point & if any case law then,it will be more helpful,if possible, pl. send Reply By MARIAPPAN GOVINDARAJAN: The Reply: Section 66E of the Finance Act, 1994 provides that temporary transfer or permitti....
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....ng the use or enjoyment of any intellectual property right amounts to declared service and liable for service tax. In my view permanent transfer of intellectual property will not amount to service tax liability. Reply By Rajagopalan Ranganathan: The Reply: Sir, According to Finance Act, 1994 service tax is payable on the royalty paid by you for transfer of intellectual property right. If the tr....
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....ansfer of the right is an one time affair, that is, the same is acquired on payment of one time fee it may be treated as sale and vat is payable. Since you have stated that no vat is paid by you then the amount paid by you to the owner of intellectual property will be treated as royalty and you have to pay service tax on the same.<br> Discussion Forum - Knowledge Sharing ....