Taxability on patent right received from out side india
This query is : Resolved
21 November 2015
Dear Members
My client developed an APP and it won the appreciation of app developers outside India and they offered him some amount as patent rights to own/register the app on their name.
My query is:
i) Is the amount exempted from Tax in India if TDS is done on the amount as per their country laws? If exempted, under which section?
ii) If no Tax is deducted and received the whole amount. How it will be taxable in India.
Thanks in Advance
My client developed an APP and it won the appreciation of app developers outside India and they offered him some amount as patent rights to own/register the app on their name.
My query is:
i) Is the amount exempted from Tax in India if TDS is done on the amount as per their country laws? If exempted, under which section?
ii) If no Tax is deducted and received the whole amount. How it will be taxable in India.
Thanks in Advance
21 November 2015
1 It is a capital gain. In case the patent was developed more than 3 years ago on the date of transfer, it is a long term capital and exemption may be claimed on investing in specified assets.
In case it is taxable in India relief on TDS made outside India can be claimed.
2 Full applicable tax has to be paid in India.
In case it is taxable in India relief on TDS made outside India can be claimed.
2 Full applicable tax has to be paid in India.
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