Vat / Service tax on Digital Royalty, Other Topics

[Sanjay D.]

We have receiving digital royalty for music  content  from various parties/ telco’s  . I  would like to know which  taxes applicable for digital royalty  income? ( Service tax  or  VAT  or  Both  )

Posts / Replies

[Pradeep Khatri]

Service would be applicable on such transactions as VAT laws does not recognised Royalty as Intangible goods at par with DEPB, Advance Authorisation untill unless you are selling the music content on some sort of physical medium such DC, DVD etc.