Effective rate of service tax for holder of intellectual property right - 017/04 - Service Tax

Rescinded vide Notification No. 34/2012- Service Tax, Dated 20/06/2012

Effective rate of service tax for holder of intellectual property right

[Notification No. 17/2004-S.T., Dated. 10/9/2004]

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by the holder of intellectual property right to any person, in relation to intellectual property service, from so much of the service tax leviable thereon under section 66 of the said Act, as is equivalent to the ¹[amount of cess payable on the said transfer of technology under the provisions of section 3 of the Research and Development Cess Act, 1986 (32 of 1986), subject to the following  conditions, namely:-

(A)        the said amount of Research and Development Cess is paid within six months from the date of invoice or in case of  associated enterprises the date of credit in the books of account:

            Provided that the exemption shall be available only if the Research and Development Cess is paid at the time or before the payment for the service;

(B)        records of Research and Development Cess are maintained for establishing the linkage between the invoice or the credit entry, as the case may be, and the Research and Development Cess payment challan.]

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Notes:

1. Substituted for the words, “amount of cess paid on the said transfer of technology under the provisions of Section 3 of the Research and Development Cess Act, 1986 (32 of 1986).” Vide notification no. 47/2011 ST dated 19-9-2011.