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Income Tax - Highlights / Catch Notes

Home Highlights March 2016 Year 2016 This

Obviously, when the assessee is using patents/trademarks of its ...

Income Tax

March 11, 2016

Obviously, when the assessee is using patents/trademarks of its parent company, it will have to pay royalty for the same which cannot be disallowed, unless it is not at arm’s length price. - AT

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  1. Royalty paid treated as capital expenses - the assessee company did not obtain any proprietary or ownership right of trademark or knowhow, no asset was created or...

  2. Payment for use of technical know-how and trademark/logo - it is patent that the payment has been made by the assessee for ‘use of ’ trademarks and not for acquiring...

  3. Nature of franchise fees paid - capital or revenue expenditure - Right to use the trademark, domino’s name and logo – Exclusive license – Held as revenue expenditure - AT

  4. Insertion of new section 115BBF - Tax on income from patent - where the total income of an eligible assessee includes any income by way of royalty in respect of a patent...

  5. Valuation - inclusion of royalty paid to parent concern - agreement does not talk about or restrict the appellant to purchase or procure raw materials only from the...

  6. TP adjustment in respect of management fee - When the TPO alleges that the assessee has not received any of the above services, it would indicate that the very...

  7. Transfer of right to use trademark - The sales tax is leviable on the turnover of sales in respect of transfer of right to use any goods - HC

  8. Disallowance of Royalty paid u/s 37(1) - assessee is a franchisee bottler for the brand Aquafina owned by the franchisor PepsiCo India Holdings Pvt. Ltd. - there is no...

  9. Infringement of trademark - defendant's trademark FREEDOM is deceptively similar to that of the plaintiff's trademark FREEMANS - HC

  10. Levy of service tax - deemed sale - right to use component of the Trademark License Agreement - in the case of the Trademark License Agreement an exclusive license to...

 

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