Service tax on royalty, Service Tax

[Prakash Gupta]

Whether service tax applicable under reverse charge mechanism on Royalty paid by resident company to non resident.

Thanks & Regards,

Pankaj Singh

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

The answer is 'yes'.

[MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Rajagopalan

[Ganeshan Kalyani]

I too agree with both the experts. Thanks.

[Hardik Shah]

Agree with the views of experts. However, I would request you to check the applicability of Research and Development Cess.

[KASTURI SETHI]

Regarding availing cenvat credit on Service Tax paid on royalty charges, I think R & D Cess has no link in any way.

[Ganeshan Kalyani]

Yes both are different in there way.