9911796707
TMI Blog2016 (9) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... ty shares of the applicant and M/s H&M Hennes & Mauritz International AB, Sweden ("H&M AB') holding the remaining 1% shares of the applicant. Applicant is in the process of setting up its business of single brand retail trading of various products viz. Clothes and Apparel, Footwear, Cosmetics and Accessories, Handbags, Home furnishing products, Children Products, Outdoor utility products etc. under the brand 'H&M'. H&M AB, resident in Stockholm, Sweden, is the parent company of the H&M group of related entities. H&M AB currently operates as the centralized administrative entity of the global H&M operation and is the owner of all H&M intellectual property related to the H&M brand and trademarks. H&M AB‟s main responsibilities include t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia on the basis of commercial arrangements with H&M GBC. In this regard, for the sale of goods in India and using the H&M concept and brand, the applicant has entered into three separate Agreements with H&M GBC, which are explained hereunder:- a. Foreign Collaboration and Sub-License Agreement: Applicant has entered into a Foreign Collaboration and Sub-License Agreement with H&M GBC dated 01.04.2014 for obtaining rights to exploit 'H&M‟ brand for sale of goods in India. The consideration for this agreement will form part of the Trademark License Agreement and a consolidated consideration will be paid by the applicant to H&M GBC for both the Agreements. b. Trademark License Agreement: Applicant has entered into a Trademark License ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er payment will be made by the applicant or by anybody else on behalf of the applicant to the said third party manufacturers for the said goods. 5. Applicant has raised following questions for rulings by this Authority in terms of Finance Act, 1994; A. Whether the Trade Mark/ License Fee and the payment made in terms of the foreign collaboration agreement by the applicant to H&M GBC is liable to Service Tax in terms of the Finance Act, 1994? B. Whether the sales and Business Support Fee paid by the applicant to H&M GBC is liable to Service Tax in terms of the Finance Act, 1994? 6. The applicant has entered into Trademark License Agreement with M/S H & M Hennes & Muritz GBC AB to use the trademark rights and other intangible property i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax is payable by the person receiving the service. The applicant has entered into Trademark License Agreement with M/s H & M Hennes & Muritz GBC AB, Sweden to use the trademark rights and other intangible property rights and required to pay the License Fee. All intellectual property rights and other rights, including without limitation patents, design rights, trademarks, copyright and know-how, relating to the IP shall all times be the exclusive property of H&M GBC, Sweden. Accordingly services received by the applicant fall under the declared services and would attract the levy of Service Tax under reverse charge mechanism. 7. The applicant also propose to receive various business support services i.e. Business Planning, strategies, oper ..... X X X X Extracts X X X X X X X X Extracts X X X X
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