RENT Vs ROYALTY

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This query is : Resolved

Deekshit (Querist)

23 January 2010 Is there any difference between Royalty and Rent??

If there is any please let me know..

THANKS A LOT in advance

CS Vandana Kacholia

CS Vandana Kacholia (Expert)

23 January 2010 Rent is an amount which we receive or accrue as rent, for the use of depreciable property used in a trade or business.

Royalty which receive from copyrights on literary, musical, or artistic works and similar property, from a patent on an invention, royalties from oil, gas, or other mineral properties.

Regards

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

23 January 2010 The major difference between rent and royalty is as under :

1. Rent is a compensation paid for an asset taken into possession for a specified period "REGARDLESS" of the use of the asset.

2. Royalty is paid on the basis of "USE" of the intellectutl property and/or depreciable assets (like mines).

Deekshit

Deekshit (Querist)

29 January 2010 hey thanks

Deekshit

Deekshit (Querist)

29 January 2010 hey thanks a lot.. it was really helpful..

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