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Queries for vat applicability on royalty as license fees

Mahavat 2633 views 2 replies

Hi friends

In the State of maharastra and Tamilnadu, VAt is applicable on Royalty as License fess @ 5% as per schedule of respetive state's vat act.  but it doest not sound well in applicablity as License fee does not qualify as goods.

Pls share your opinion or also share if having any judgement on thios practice ...

Friends, your earliest response will be helpful a lot

Thanks

 

Replies (2)

  Mr Ashutosh B ,

   Generally royalty paid in the case of goods procured from natural sources,like sand,stone metal,forest produce,soil in some cases, is considered as equivalent to purchase price and charged while levying VAT on purchase value.  Suppose a contractor is bringing sand from a nearby riverbed and uses in a construction work,the expenses he incurred on royalty,transportation and labour will be taken as cost of that material

for levying VAT.........MJK

Dear Sir,

               I have bought rough marble blocks from querry existing in rajasthan. When i got purchase bill there is several taxes charged like Service Tax on DMF Charges, VAT on SERVICE TAX etc ... my question is ... can there any circumstance where the supplier can charge VAT on SERVICE TAX ????


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