royalty received from books, Service Tax

[satbir singh wahi]

Company is receiving royalty on books , whether taxable under service tax ?

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Sl. No. 15 (a) of Notification No. 25/5012-ST dated 20.6.2012 as amended exempts "services provided by way of temporary transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical or artistic works."

[YAGAY AND SUN]

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=802

[Himansu Sha]

It means the company has exploited commercially the copyrights and received the royalty. The royalty is not for original literary creations and hence taxable

[satbir singh wahi]

Thks for reply .

[Himansu Sha]

The reply is basically as per the circular of the Department. It appears the company has obtained the copy rights from the original authors.