We have paid Royalty in terms of Agreement with the Foreign service provider during 2007-2008. This is in respect of set-up of new ZR module to enhance the production capacity. As per the agreement, the payment of Royalty USD 1 per MT to be paid and accordingly we have paid 9 Lacs USD to the Foreign Service provider during 2007-08. Since, the payment made by us does not related to any service rendered by the Service provider, we have not paid any Service Tax under Intellectual Property Right. Kindly let us know whether such payment shall be covered in Service catagory " Intellectual property Right" .
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It is covered under IPRs Service.