Service Tax on Royalty
This query is : Resolved
05 May 2017
Suppose if an Indian Company pays Royalty to a Foreign Party . The Royalty is paid on sales both in India and abroad. Now on which Royalty will service tax be applicable. Whether on both/Only Domestic sales/Only Sales abroad?
05 May 2017
Service tax is levied on both royalty i.e royalty paid for sale in india as well as abroad, because as per place of provision rules of service tax, Royalty paid for sale in india is directly situated with india hence service tax is required to be paid on same and as far as royalty in respect of foreign sale is considered though services are not directly receivedin india but person receiving services are resident hence service tax is also required to be paid on same.
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