VAT on royalty, Service Tax

[SANJAY KUMAR]

we are raised bill for royalty receive from party. we are Charge service tax @10.3% & VAT 4% in bill. please clear my issue we should charge vat or not please provide fully comments on this issue

Posts / Replies

[Rama Krishana]

In my view if the royalty is related right to use of the good, you have to pay VAT. If no good is involved and royalty is related to services which are not goods, no VAT is payable. The determination that the transaction in question is good or not is a question of fact and needs to be addressed carefully.