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Royalty on Intellectual property Rights
Please give clarification for the following query? If royalty transaction occurred with in the two companies GST registrants, then FCM or RCM applicable at first sight and safe side ? For the royalty paid to un registered customers, then RCM applicable or not?
Replies (2)
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Royalty = Supply of service under GST
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FCM applies when both parties are registered
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RCM applies when paid to unregistered persons (safe view) or in notified cases like Govt/mining
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Always evaluate nature of royalty + supplier status before deciding
Supply of service under gst is peculiar.
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