royalty - outside india

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dear all,

 

Royalty is payable to a comapny situated outside india, is there any provision to pay service tax on their behalf by the person who pays royalty from India to them?

Replies (1)

Dear Soumyayan,

 

Yes, if the royalty covered by any of the clauses of section 65(105) of the finance act 1994, then payment of royalty outside india is covered by import of service rules, 2005 and in that case receiver of service is liable to pay the service tax.

 

Regards,

 

Manoj

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