Service tax on ipr-royalty

Ashok Jogalekar (Querist) 01 October 2013 This query is : Resolved
"Royalty payments or IPR are taxable under VAT / sales tax as deemed sales, so no Service Tax is applicable as per Service Definition, however it also appears under declared services. When the definition of the service excludes such deemed sale transaction, then why temporary transfer for use of IPR not been deleted from declared services? This anomaly/ contradiction existing in Act/Rules is creating confusion and will lead to unnecessary litigation"... This being the case whether Service tax should be paid in case IPR service is received from abroad under reverse charge mechanism.

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