Royalty and Rent, Service Tax

[EMMANUEL VIJAYARAJAN]

Hi I have a question,

A factory is leased out on rent and royalty is charged on the no of units produced.

My question is

1 Royalty charged is not covered under IPR. Hence is the amount received as royalty on goods manufactured come under service tax.ambit?

2 Is the 10 lakh exemption amount on service tax a combination of rent and royalty.

Thanks

Posts / Replies

[Naveed S]

1) Yes

2) No