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TMI BlogEFFECTIVE RATE OF SERVICE TAX ON INTELECTUAL PROPERTY SERVICEX X X X Extracts X X X X X X X X Extracts X X X X ..... PLEASE INTIMATE THE EFFECTIVE RATE OF SERVICE TAX ON INTELLECTUAL PROPERTY SERVICE (IMPORT OF TECHNOLOGY) AFTER DEDUCTING R&D CESS i. e. WHETHER IT WILL BE 12.36%-5% R&D CESS = 7.36% OR 12%-5%=7%+. 21%(CESS)=7.21%.AN EARLY REPLY IS REQUESTED. THANK YOU SIR. - Reply By Pradeep Khatri - The Reply = Dear Vinod, NOTIFICATION No. 18/2002 - Service Tax, Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d December 16, 2002 , reads as: In exercise of the powers conferred by Sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided by a consulting engineer to any person on transfer of technology from so much of the service tax leviable ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eon under Section 66 of the said Act, as is equivalent to the amount of cess paid on the said transfer of technology under the provisions of Section 3 of the Research and Development Cess Act, 1986 (32 of 1986) . Now this is amended by Notification No. 46/2011 dated 19 September 2011 to read as: In exercise of the powers conferred by Sub-section (1) of Section 93 of the Finance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided by a consulting engineer to any person on transfer of technology from so much of the service tax leviable thereon under Section 66 of the said Act, as is equivalent to the amount of cess payable on the said transfer of technology under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of section 3 of the Research and Development Cess Act, 1986 (32 of 1986), subject to the following conditions, namely:- (A) the said amount of Research and Development Cess is paid within six months from the date of invoice or in case of associated enterprises the date of credit in the books of account: Provided that the exemption shall be available only if the Rese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch and Development Cess is paid at the time or before the payment for the service; (B) records of Research and Development Cess are maintained for establishing the linkage between the invoice or the credit entry, as the case may be, and the Research and Development Cess payment challan. So, to claim the exemption, the assessee had to: pay the cess within six months from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of invoice; the cess is paid with or before the payment for the service; records to show linkage has to be maintained. Further this, Notification was amended by 14/2012-ST [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB -SECTION (i)] Government of India Ministry of Finance (Department of Revenue) Notification No.14/2012 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax New Delhi, the 17 th March 2012 G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service involving import of technology, from so much of the service tax leviable thereon under section 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6B of the said Act, as is equivalent to the amount of cess payable on the said import of technology under the provisions of section 3 of the Research and Development Cess Act, 1986 (32 of 1986), subject to the following conditions, namely:- (a) that the said amount of Research and Development Cess is paid within six months from the date of invoice or in case of associated enterprises, the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of credit in the books of account: Provided that the exemption shall be available only if the Research and Development Cess is paid at the time or before the payment for the service; (b) that the records of Research and Development Cess are maintained for establishing the linkage between the invoice or the credit entry, as the case may be, and the Research and Development Cess payment challa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. 2. This notification shall come into force from the date on which section 66B of the Finance Act, 1994 comes into effect. [F. No. 334/1/2012-TRU] (Samar Nanda) Under Secretary to the Government of India After going through the above, in our opinion, it will be Service Tax would be calculated @7.21%. Team YAGAY and SUN (Management and Indirect Tax Consultants) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By VINOD KUMAR - The Reply = THANK YOU SIR. - EFFECTIVE RATE OF SERVICE TAX ON INTELECTUAL PROPERTY SERVICE - Query Started By: - VINOD KUMAR Dated:- 3-8-2014 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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