Service tax

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Mukesh Katara (Querist)
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02 October 2012 Query for the members..........., Entry 15 in Mega Notification 25/2012-ST dated 20 June 2012, exempts "Temporary transfer or permitting the use or enjoyment of a copyright covered under clauses (a) or (b) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 relating to original literary, dramatic, musical, artistic works or cinematograph films;". Now my question in this regard is that suppose if A Ltd buys a software from X Inc., USA who provides the license keys over email. A Ltd has to download the .exe file from vendors website and install in its computer and activate the license using license key so at to begin using the software. Please confirm firstly whether this activity falls under Entry 15? Secondly, please describe that is there any guidance on what is the 'type of use’ and 'type of enjoyment’, referred to in the said exemption?

CA Suresh Jain

CA Suresh Jain (Expert)
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02 October 2012 Yes, the transaction is covered under this entry provided licence and contract is for use/enjoyment of copy right and also the payment is for transfer of copyright for use or enjoyment of computer software.

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