intellectual property services

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Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2011 Whether brand owners providing right to use of their brand and technical know-how fall
under intellectual property services?

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2011 Brand owners hold intellectual property rights over the brand names, whereas other persons hold license granted by the State Government to manufacture under the brand name of the brand owner. The brand owner enters into an agreement with such manufacturers/licencee to grant
permission to use their brand as well as also provide technical staff/assistance to maintain required quality. Property, risk and reward of the products so manufactured rest with such manufacturer/licensee. Such manufacturer/licensee pays on the agreed sum to the brand owner for grant of permission to use the brand name and the technical know-how. The Board through
instruction F.No. 249/1/2006-CX.4, dated 27-10-2008 has clarified that in such cases brand owner provides taxable service, i.e., intellectual property service to licensee/manufacturer, on which service tax is chargeable on the gross amount charged by the brand owner.

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