17 June 2015
One of my client have a registered trademark. He is not using the Trademark. I have made an agreement for use of his registered Trademark Whether, I would be liable to deduct TDS on payment of use of Trademark
18 June 2015
This will fall under the definition of Royalty first proviso and the TDS with pan would be 10% and without PAN @ 20% u/s 206AA.
On reading the first proviso to sec.9(1)(vi)one can infer that the trademark is also included under the royalty.
However if the trademark is transferred for a lump sump then it will not fall under the definition of royalty and no TDS is required to be deducted on the same. But VAT may come into plat depending upon the state VAT act.
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